China’s SAFE tightens control over interbank currency trade
|The State Administration of Foreign Exchange (SAFE), China’s fx regulator, tightened control over the inner workings of its currency market, enhancing scrutiny of forex dealers, Reuters reports, citing two banking sources.
Key takeaways
"Urge market makers to narrow bid/ask spreads."
"Has always supported participants in trading reasonably and to promote order and efficiency."
"The moves follow recent efforts at curtailing financial risks that include dampening commodity price rises, banning cryptocurrency transactions and restricting property speculation."
Market reaction
The S&P 500 futures are little changed on the above news while USD/CNY holds gains below 6.4700, as of writing.
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