PBOC Issues the Regulations on the Administration of the Interbank Foreign Exchange Market
For the purposes of regulating and developing the foreign exchange market, expanding high-standard opening-up, protecting the legitimate rights and interests of all parties concerned, preventing relevant risks, and promoting development of the foreign exchange market to better serve the real economy, the People's Bank of China (PBOC) has revised the Interim Provisions on the Administration of the Interbank Foreign Exchange Market (Yinfa No.423 [1996]) and issued the Regulations on the Administration of the Interbank Foreign Exchange Market (PBOC Order No.13 [2025] ), which will come into effect on February 1, 2026.
Based on the developments in China's interbank foreign exchange market and the regulatory practices, the Regulations have combined the relevant provisions to form a regulatory framework and lay out the regulatory requirements systemically. The focuses are as follows. First, strengthening regulation over the interbank foreign exchange market. Requirements are clearly laid out regarding trading venues, business qualifications, quotation norms, trading and clearing rules, information management, data services, self-regulatory management, etc. to ensure full regulatory coverage. Second, maintaining sound operation of the foreign exchange market. The Regulations provide for the rights and obligations of not only the infrastructures but also the domestic and overseas financial institutions, currency brokers, and financial information service providers in the interbank foreign exchange market. Transactions in the market shall be conducted in line with the principles of openness, fairness, impartiality, and good faith to ensure protection of the legitimate rights and interests of market participants. Third, advancing high-quality development of the interbank foreign exchange market. The Regulations show support for the efforts of the foreign exchange market infrastructures to diversify trading and clearing products, currencies, and methods based on market demand so as to facilitate financial institutions' provision of foreign exchange services to their clients.
Going forward, the PBOC and the State Administration of Foreign Exchange (SAFE) will further improve the administration of the interbank foreign exchange market, deepen the development of the foreign exchange market, and maintain its sound operation.
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