China's foreign exchange regulator said that it will increase the variety of foreign exchange derivative products to facilitate steady growth of exports and cope with currency risks.
Â
The State Administration of Foreign Exchange (SAFE) said in a notice, effective as of 1 August, on its website that it will strengthen supervision on trading of derivatives by banks to ensure that the products help companies deal with the risks.
Â
The SAFE also said it will expand the variety of tools for managing currency risks with a focus on foreign exchange options, and add principal swap transactions for currency swaps.
Â
And it will lower the entry threshold for companies developing foreign exchange options and simplify entry processes for banks'Â branches, according to the regulator. Â