Forex Wolves Howling for Efficient Investment

Opening a new office at the State Administration of Foreign Exchanges (SAFE) whose mission is to explore investment channels for China's US$ 3 trillion in foreign exchange reserves marks a concrete step forward for the central bank in its effort to improve the economic benefits of forex cash.

The new SAFE Co-Financing office is a refinancing mechanism for forex reserves. It's set up to provide forex loans to enterprises through commercial banks. Financing rates are expected to below market rates.