China to help enterprises fend off foreign exchange rate risks

BEIJING -- Chinese authorities have decided to help foreign trade enterprises fend off foreign exchange rate risks amid a volatile international financial market situation.

The country will optimize risk hedging products and services, and further facilitate cross-border payments of the Chinese renminbi (RMB), according to a circular jointly released by the Ministry of Commerce, the People's Bank of China and the State Administration of Foreign Exchange.

To satisfy risk management demand, banks are encouraged to craft tailor-made tools and services for enterprises, and improve their foreign exchange derivatives services, the document said.

Efforts will go into facilitating the use of the RMB in cross-border trade settlements and boosting the efficiency of the RMB in cross-border settlements, it said.