China Opens Onshore Forex Market to Overseas Yuan Clearing Banks

China has allowed overseas yuan clearing banks to trade directly in its onshore foreign-exchange market for the first time under a new pilot program, as Beijing steps up efforts to promote the international use of its currency.

Four overseas branches of Chinese banks recently completed the first transactions with domestic and foreign financial institutions, according to a Monday announcement by the China Foreign Exchange Trade System (CFETS), which operates the country's interbank foreign-exchange market.