China's corporates can now hedge financing needs, Safe says
The regulator clarifies its relaxed rules on forwards settlement in FX and sets out several specific examples of financing needs for which treasurers can use such products to hedge.
China's foreign exchange regulator yesterday clarified its rules on forward settlement, confirming that the rules would apply to financial transactions as well as for other foreign exchange risk exposure. Treasurers will not have to show actual foreign exchange receipts and payments.
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