China says to permit banks to trade yuan swaps for clients

SHANGHAI Jan 31 (Reuters) - China will permit designated banks to trade yuan/foreign currency swaps on behalf of their clients starting March 1, the country's foreign exchange regulator said.

Non-bank clients will be allowed to sign agreements now and exchange the yuan and foreign currencies, together with their interest rates, at a future time, the State Administration of Foreign Exchange said in a statement published on its website, www.safe.gov.cn. late on Sunday.

Currently only banks can trade yuan/foreign currencies swaps and the reform is a part of China's efforts in recent years to expand the yuan's business to help regionalise and eventually globalise its currency. (Reporting by Lu Jianxin and Melanie Lee; Editing by Sanjeev Miglani)