China is considering allowing non-banks, including brokerages, insurers and trust firms, to trade in the interbank foreign exchange market, two sources with direct knowledge of the matter told Reuters on Wednesday. The move would represent the latest step by Beijing to liberalise the country's tightly-controlled financial markets. It would be the biggest reform in its forex market since the central bank doubled the daily trading range for its yuan currency in March.
Currently the interbank foreign exchange market in China is limited only to banks. Authorities are seeking feedback on a draft proposal to allow non-banks to conduct trades with market makers in the spot and derivatives markets.