The central bank issued the “Regulations on the Administration of the Interbank Foreign Exchange Market” to promote the foreign exchange market to serve the real economy

The Zhitong Finance App learned that on December 26, the central bank issued a notice that the “Regulations on the Administration of the Interbank Foreign Exchange Market” have been reviewed and approved by the 17th Executive Meeting of the People's Bank of China on December 4, 2025. They have now been issued and will take effect from February 1, 2026. Among them, it is mentioned that interbank foreign exchange market transactions should follow the principles of openness, fairness, impartiality, and honest credit, and that acts that affect the order of the interbank foreign exchange market and damage the legitimate rights and interests of market participants are prohibited. With the authorization of the People's Bank of China, the Foreign Exchange Trading Center can calculate, form and publish the central price of the RMB exchange rate based on the quotes of eligible financial institutions, and calculate and publish important data indicators such as the closing price of the RMB exchange rate and the reference exchange rate in accordance with relevant rules.

Financial institutions participating in median price quotation shall not provide median price quotation information to other institutions and individuals. Spot transaction prices in the interbank foreign exchange market implement a maximum daily fluctuation management mechanism, and quotes and transactions must not exceed the fluctuation range of the central price of the corresponding currency pair up and down. The fluctuation range is determined and announced by the People's Bank of China. When financial institutions participate in the interbank foreign exchange market, they shall take effective measures to manage conflicts of interest between financial institutions and customers and between different customers, and shall not harm the legitimate rights and interests of customers.

The original text is as follows:

The People's Bank of China issued the “Regulations on the Administration of the Interbank Foreign Exchange Market”

In order to standardize and develop the foreign exchange market, expand a high level of openness to the outside world, protect the legitimate rights and interests of all parties, prevent related risks, and promote the foreign exchange market to better serve the real economy, the People's Bank of China revised the “Interim Provisions on the Administration of the Interbank Foreign Exchange Market” (Yinfa (1996) No. 423) and issued the “Regulations on the Administration of the Interbank Foreign Exchange Market” (People's Bank of China Order (2025) No. 13), which will take effect from February 1, 2026.

The new regulations are based on developments and changes in China's interbank foreign exchange market and supervisory practices, and integrate relevant regulations in an integrated manner to form a systematic regulatory framework and regulatory requirements. The main contents include: First, strengthening the supervision of the interbank foreign exchange market, clarifying corresponding requirements in the fields of trading venues, qualification conditions, quotation regulations, transaction settlement rules, information management, data services, self-regulatory management, etc., to achieve full coverage of business supervision. The second is to maintain the steady operation of the foreign exchange market, standardize the rights and obligations of interbank foreign exchange market infrastructure, domestic and foreign financial institutions, currency brokerage companies, and financial information service providers, and require that the principles of openness, fairness, impartiality, and honest credit be followed to protect the legitimate rights and interests of market participants. The third is to promote the high-quality development of the interbank foreign exchange market, support the foreign exchange market infrastructure to continuously enrich the types, currencies, methods, etc. of transactions and clearing according to market demand, and facilitate financial institutions to provide customers with foreign exchange services.

In the next step, the People's Bank of China and the State Administration of Foreign Exchange will continue to improve the management of the interbank foreign exchange market, deepen the development of the foreign exchange market, and maintain the steady operation of the foreign exchange market.

People's Bank of China Order [2025] No. 13 (Regulations on the Administration of the Interbank Foreign Exchange Market)

The “Regulations on the Administration of the Interbank Foreign Exchange Market” have been reviewed and approved by the 17th Executive Meeting of the People's Bank of China on December 4, 2025. They have now been issued and will take effect from February 1, 2026.

Interbank Foreign Exchange Market Management Regulations

Chapter I General Provisions

Article 1 These Provisions are formulated in accordance with laws and regulations such as the “People's Bank of China Law of the People's Republic of China” and “Foreign Exchange Administration Regulations” in order to regulate and develop the foreign exchange market, protect the legitimate rights and interests of all parties, maintain the foreign exchange market order and the public interest of society, promote the foreign exchange market to serve the real economy, and expand a high level of openness to the outside world.

Article 2 The interbank foreign exchange market referred to in these Regulations refers to a market where RMB and foreign currency transactions are carried out through the China Foreign Exchange Trading Center (hereinafter referred to as the Foreign Exchange Trading Center).

Article 3 Renminbi and foreign currency transactions between domestic financial institutions that are qualified to operate foreign exchange settlement and foreign exchange sales services shall be carried out through foreign exchange trading centers.

Overseas financial institutions participating in the interbank foreign exchange market shall abide by the relevant regulations of the People's Bank of China and the State Administration of Foreign Exchange.

Article 4 Domestic financial institutions may choose bilateral clearing or centralized clearing through Interbank Market Clearing House Co., Ltd. (hereinafter referred to as Shanghai Clearing House).

Article 5 The People's Bank of China and the State Administration of Foreign Exchange shall be responsible for supervising and managing the interbank foreign exchange market.

Article 6. Interbank foreign exchange market transactions shall follow the principles of openness, fairness, impartiality and honest credit, and acts that affect the order of the interbank foreign exchange market and damage the legitimate rights and interests of market participants are prohibited.

Chapter II Management of Market Participating Agencies

Article 7. Under the supervision of the People's Bank of China and the State Administration of Foreign Exchange, the Foreign Exchange Trading Center and the Shanghai Clearing House shall separately organize interbank foreign exchange market transactions and clearing within the prescribed scope, formulate business rules, and provide facilities and services.

Article 8 The Foreign Exchange Trading Center and the Shanghai Clearing House shall strengthen business collaboration, carry out data exchange, ensure the safe and efficient operation of operations and systems, and continuously improve the service level of facilities.

Article 9 Where major abnormalities or system failures occur in the interbank foreign exchange market, which may have a significant impact on the normal order and market fairness of the foreign exchange market, the Foreign Exchange Trading Center and the Shanghai Clearing House shall immediately take emergency measures and promptly report to the People's Bank of China and the State Administration of Foreign Exchange.

Article 10. Domestic financial institutions participate in the interbank foreign exchange market as legal persons, and shall first obtain permission to operate foreign exchange settlement and foreign exchange sales business. Except as otherwise provided by the People's Bank of China and the State Administration of Foreign Exchange.

Article 11 The Foreign Exchange Trading Center and the Shanghai Clearing House are respectively responsible for managing the eligibility of financial institutions to participate in transactions and clearing qualifications in the interbank foreign exchange market, and perform corresponding market management duties.

Article 12 Financial institutions shall establish and improve internal management systems and risk control mechanisms, and implement separation mechanisms between the front, middle, and back offices.

Article 13 Financial institutions shall appoint traders with the necessary abilities to carry out quotes and transactions in the interbank foreign exchange market on their behalf, and strengthen the regulation and management of transactions.

Article 14 Financial institutions shall complete transaction confirmation in a safe and efficient manner as soon as possible after the transaction is concluded, and independently decide to participate in risk mitigation services such as transaction cancellation and simultaneous settlement to improve settlement efficiency and mitigate transaction risks.

Article 15 When financial institutions carry out interbank RMB foreign exchange derivatives transactions, they shall sign a master agreement on derivatives transactions with their counterparties.

Article 16 Domestic currency brokerage companies may provide brokerage services for interbank RMB foreign exchange derivatives, etc.

After financial institutions reach an intention to trade RMB foreign exchange derivatives through negotiations with domestic currency brokerage companies, they should immediately confirm through the foreign exchange trading center before reaching a transaction.

Chapter III Business Supervision and Management and Legal Liability

Article 17 With the authorization of the People's Bank of China, foreign exchange trading centers may calculate, form and publish the central price of the RMB exchange rate based on the quotes of eligible financial institutions, and calculate and publish important data indicators such as the closing price of the RMB exchange rate and the reference exchange rate in accordance with relevant rules.

Financial institutions participating in median price quotation shall not provide median price quotation information to other institutions and individuals.

Article 18 Spot transaction prices in the interbank foreign exchange market shall implement a maximum daily fluctuation management mechanism, and quotes and transactions shall not exceed the fluctuation range of the median price of the corresponding currency pair up and down. The fluctuation range is determined and announced by the People's Bank of China.

Article 19 Foreign exchange trading centers shall enrich the types, currencies, and methods of RMB and foreign currency transactions according to the needs of serving the real economy, and improve transaction schedules.

(1) Trading types include spot, forward, foreign exchange swaps, currency swaps, options, etc.

(2) Transaction methods include inquiry, bidding, matching, and other approved transaction methods.

Article 20 The Shanghai Clearing House shall expand the types and currencies of liquidation according to the needs of serving the real economy, reasonably measure risk resources, and calculate the size of security deposits and clearing funds.

Article 21. Financial institutions participating in the interbank foreign exchange market shall take effective measures to manage conflicts of interest between financial institutions and customers and between different customers, and shall not harm the legitimate rights and interests of customers.

Article 22. Interbank foreign exchange market transactions shall be governed by a market maker or quoting bank system. Market makers or quoting banks in the interbank foreign exchange market shall assume the obligation to continuously provide the purchase and sale prices for RMB and foreign currency transactions.

Article 23. Domestic financial institutions may settle their foreign exchange sales business exposure through the interbank foreign exchange market and reasonably carry out market-making or proprietary transactions, actively provide liquidity to the market and balance the supply and demand gap in the foreign exchange market.

Overseas financial institutions participating in the interbank foreign exchange market should adhere to the principle of prudence and meet actual needs such as managing exposure to RMB exchange rates in cross-border transactions. Where the People's Bank of China and the State Administration of Foreign Exchange have other regulations on overseas central bank-like institutions, they shall follow their regulations.

Article 24 Financial institutions, foreign exchange trading centers, Shanghai clearing houses, and domestic currency brokerage companies shall properly protect information relating to transactions.

(1) Exchange transaction information in a manner that complies with relevant regulations, and follow the principles of traceability, auditability, records, and access control.

(2) Properly and completely keep records relating to transactions and liquidation in accordance with regulations.

Article 25 The Foreign Exchange Trading Center and the Shanghai Clearing House shall fulfill the obligation to disclose information on foreign exchange market transactions and liquidation, and regularly publish basic market conditions, liquidation information, etc.

Article 26 The Foreign Exchange Trading Center and the Shanghai Clearing House shall perform data statistics and information reporting obligations in accordance with the requirements of the State Administration of Foreign Exchange.

Article 27 The Foreign Exchange Trading Center and the Shanghai Clearing House may provide interbank foreign exchange market data services to financial institutions, financial information service providers, etc. in accordance with the principle of commercialization.

(1) Data services shall follow the principles of fairness, rationality and non-discrimination, comply with relevant regulations on data security, network security, etc., fulfill data security protection obligations, and carry out data processing and desensitization, and shall not harm the interests of participating organizations.

(2) Where data services involve data leaving the country, they shall comply with relevant regulations such as data exit security.

Article 28 Financial information service providers and other institutions that distribute data relating to the interbank foreign exchange market to the market shall ensure the timeliness and consistency of relevant information.

Article 29 The Foreign Exchange Trading Center and the Shanghai Clearing House shall follow the principles of openness and rationality when collecting fees related to transactions and clearing from financial institutions.

Article 30 The foreign exchange market self-regulatory mechanism performs the function of self-regulatory management, and is responsible for formulating foreign exchange market standards and implementing self-regulatory management. The People's Bank of China and the State Administration of Foreign Exchange guide and supervise self-regulatory management activities in accordance with law, and domestic financial institutions and domestic currency brokerage companies participating in the interbank foreign exchange market should join the foreign exchange market self-regulation mechanism.

Article 31 Where financial institutions, foreign exchange trading centers, the Shanghai Clearing House, domestic currency brokerage companies, other institutions and related personnel violate these regulations, the State Administration of Foreign Exchange has the power to order them to make corrections within a limited period of time, seize illegal proceeds, and give penalties such as warnings, fines, or order the cessation of operations related to the seriousness of the circumstances; if they are not within the jurisdiction of this department, they shall be handed over to other competent administrative organs; those suspected of committing a crime shall be handed over to the judicial authorities in accordance with the law.

Chapter IV Supplementary Provisions

Article 32. Domestic financial institutions shall not apply to these Regulations when permitted to participate in offshore RMB and foreign currency transactions.

Article 33. The meaning of the following terms in this provision:

(1) Domestic financial institutions refer to institutions established in the People's Republic of China to conduct financial business with the approval of the financial administration department under the State Council.

(2) Overseas financial institutions refer to overseas central bank institutions, overseas clearing banks, overseas participating banks, and other types of overseas institutional investors that meet the requirements.

(3) Domestic currency brokerage companies refer to non-bank financial institutions established within the country with the approval of the State Financial Supervision and Administration to provide brokerage services for financial transactions between financial institutions.

(4) A financial information service provider refers to an organization that provides market information or data services to users engaged in financial analysis, financial transactions, financial decisions, and other financial activities.

Article 34: The People's Bank of China is responsible for interpreting these regulations.

Article 35: These regulations will take effect on February 1, 2026. The “Interim Provisions on the Administration of the Interbank Foreign Exchange Market” (issued by Yinfa (1996) No. 423) and the “Notice of the People's Bank of China on Issues Related to Accelerating the Development of the Foreign Exchange Market” (Yinfa (2005) No. 202) were abolished at the same time.

This article was selected from the official website of the “People's Bank of China”. Zhitong Finance Editor: Jiang Yuanhua.