The business is mainly composed of foreign currency exchange market and foreign currency exchange market.
1. The RMB/Foreign Currency Market The RMB/foreign currency market is managed by the China Center located in Shanghai.
The trading center adopts the membership system. All financial institutions and their branches approved by the State Administration can become members after submitting applications and receiving approval.
Members can access the market in two ways: one is through live trading.
Members designate traders to enter the fixed trading place of the trading center and conduct trading through the special trading desk established for them by the trading center;
The second is remote trading, where members trade on their desks through a computer network with a trading center system.
2. Foreign Currency to foreign Currency market Foreign currency to foreign currency market does not involve RMB business and has little direct impact on the domestic economy. Therefore, the State Administration of Foreign Exchange has less restrictions on foreign currency pairs.
At present, almost all banks and non-bank financial institutions holding foreign exchange business licenses issued by the State Administration of Foreign Exchange can handle foreign currency-to-foreign currency transaction agency business.
Participants in this market include not only companies and enterprises, but also individual residents holding foreign exchange.
They participate in the transaction through or through a bank (or financial institution with authority to deal in foreign exchange).
