China, US cooperate in foreign exchange (Xinhua) Updated: 2004-06-14 14:08
The China Foreign Exchange Trade System (CFETS) has signed a memorandum of
understanding on cooperation with the Chicago Mercantile Exchange (CME), said a
high-ranking official with CFETS.
Lin Yuli, president of CFETS, said the two sides signed the memorandum on
June 8 in Chicago.
According to the memorandum, CFETS will provide its US counterpart
information on foreign exchange and the money market in China, including
policies, regulations and detailed development of the market.
"The information could help CME to understand the development of the money
market in China better," said Lin.
Meanwhile, CME would help the Chinese side to become familiar with the
operation, products and rules of international foreign exchange derivative
market. It will also assist China with design and marketing of derivative
products and help train professional traders.
Terry Duffy, chairman of CME, said Asia is a new market that CME is preparing
to tap. The signing of the memorandum will lay a strong foundation for further
cooperation for the two sides in the future.
Under the supervision of the People's Bank of China, CFETS is one of the
major money markets in China which is engaged in inter-bank lending of foreign
exchange and Renminbi. In the past years, CFETS has seen a rapid transaction
volume increase. In 2003, it registered transaction volume of foreign exchange
equaling US$151.1 billion, up 55 percent over the previous year, while that of
Renminbi businesses was 17.2 trillion yuan (US$2.08 trillion), up 45 percent.
The CME is the largest futures exchange in the United States and the largest
futures Clearing House in the world for the trading of futures and options on
futures contracts.
