Notice on issues related to RMB currency swap business

The provinces of the State administration of foreign exchange autonomous regions, municipalities, foreign Exchange Management Department, Shenzhen, Dalian, Qingdao, Xiamen, Ningbo Branch; foreign exchange designated banks: in order to further meet the domestic economic subjects to avoid exchange rate risk demand, the foreign Exchange designated Bank (hereinafter referred to as the Bank) on the Customer Yuan foreign currency swaps (hereinafter referred to as currency swaps　　Business related to foreign exchange management issues notice as follows: First, this notice refers to the currency swaps, is the agreed period of exchange of the amount of renminbi and foreign currency principal, and periodically exchange two currency interest transactions agreement.　　The form of principal Exchange includes: (a) exchange of the principal between the RMB and foreign currency at the agreed exchange rate at the date of entry into force of the agreement, and at the expiration of the agreement the two Parties shall exchange the principal with the same exchange rate and the same amount;　　Interest exchange refers to the amount of interest paid by the parties to each other on a regular basis in exchange for currency, which can be calculated at a fixed interest rate or at a floating rate. Second, to obtain the customer RMB foreign exchange swap business qualification over 1 years of banks, customers can start currency swaps business.　　A bank branch is authorized by its legal person (a branch of a foreign commercial bank) to start a currency swap business with a client.　　Third, the bank to the customer for currency swaps business currency, the term and other transaction elements, determined by the bank itself.　　The interest rates of the currency swaps are determined by both parties, but they should be in accordance with the PBOC's regulations on deposit and loan interest rates, and the interest rate of the bank for the exchange of the currency shall not be limited to the benchmark interest rate of deposit (loan) as announced by the People's Bank of China. The Bank shall carry out the currency swap business with the clients by reference to the implementation of the circular of the foreign Exchange Bank on the issue of the foreign exchange management of the clients and the RMB and foreign currency swaps (2006]52) and the State administration of safe on issuing the statistical system for the issuance of < bank transactions　　> Notice (remitted [2006]42) and other documents on foreign exchange swap business related foreign exchange management regulations and statistical requirements.　　The Bank shall submit the RMB interest rate of currency swap business on a monthly basis, as detailed in annex 1, 2.　　In the currency swap business, the foreign currency interest that the bank obtains from the customer shall be integrated into the bank's foreign exchange profit management and shall not be settled separately.　　If the bank violates the provisions of this notice to handle currency swap business, the State administration of foreign exchange shall punish them according to the regulations on foreign exchange administration of the People's Republic of China.　　This notice has been implemented since March 1, 2011. After receiving this notice, the various branches of the State administration of safe and foreign exchange administration shall immediately forward the municipal commercial banks, rural commercial banks, rural cooperative banks and foreign banks. If you encounter any problems in implementation, please contact the balance of Payments Division of the State Administration of foreign exchange.　　Tel: 010-68402304, 68402313.　　hereby inform. January 19, 2011