In a bid to promote China's inter-bank foreign exchange (forex) market, the People's Bank of China (PBOC), the country's central bank, has allowed the entry of seven more foreign institutions into the market.

According to a Xinhua report, the central bank allowed the Reserve Bank of India, the International Finance Corporation, Bank for International Settlement, Bank of Thailand, Bank of Indonesia, the Monetary Authority of Singapore, and the Bank of Korea to enter the country's inter-bank forex market.

Like Us on Facebook

The seven newcomers have completed their registration with the China Foreign Exchange Trading System, bringing the number of central banks and similar institutions that have been allowed to enter the market to 14.

According to the PBOC, the entry of more foreign players in the country's forex market will help steadily help promote the openness of the market. Opening the country's forex market forms part of the governments sweeping financial reforms aimed at strengthening the country's economy.

With the approval from the central bank, the seven new institutions will now be able to participate in the inter-bank forex market as foreign members. They can also use their inter-bank forex market members as their agents, or allow the PBOC to be their official agent.

The foreign institutions are permitted to conduct foreign exchange and renminbi trading of one or more traded forex products, the official Xinhua news agency has reported.

It was in November 2015 when seven central banks and financial institutions were allowed to enter China's inter-bank forex market, the Xinhua report added. More financial markets in China will soon be opened to foreign investors as part of the country's opening up to global players.

Tagsforeign exchange, Forex Market, china market, China Foreign Exchange