BOC halts forex swaps with some European banks

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As the European debt crisis worsens, the Bank of China is taking steps to make sure that problems from the continent will not affect their business. The bank which plays a large role in China's onshore foreign exchange market, has stopped foreign exchange forwards and swaps trading with several European banks.

The financial institutions affected includes, French banks Societe Generale, Credit Agricole and BNP Paribas. The decision is being made partly because of the downgrade of the entities by Moody's ratings agency. The move may apply to all of the Bank of China's branches, including the onshore foreign exchange market.

Some industry insiders believe the action is an indication that Chinese lenders have joined the growing ranks of institutions cutting exposure to the crisis-hit eurozone.

As the European debt crisis worsens, the Bank of China is taking steps to make sure
that problems from the continent will not affect their business.

Editor:Li Wanran |Source: CNTV.CN



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