Bank of China suspends forex swaps with European banks
- By Yang Xi
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China.org.cn, September 21, 2011
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Bank of China's headquarters in Beijing.? [Photo/ China Daily] |
Bank of China has suspended foreign exchange forwards and swaps trading with several European banks, an unnamed insider from the state-run bank told said Tuesday, the Beijing News reported.
Societe Generale, BNP Paribas SA and Credit Agricole have been told that Bank of China will stop trading with them in China’s local derivatives markets, the insider said.
Meanwhile, Bank of China has cut credit lines and reduced exposure to the European banks, which have reached the limits of their trading credit lines, the source said.
Last week, Moody's Investors Service downgraded the credit ratings of Societe Generale and Credit Agricole on concerns over sizeable exposures to the Greek economy.
Bank of China has not halted low-risk spot exchange transactions with these European banks.
Other Chinese banks, including the Industrial and Commercial Bank of China, China Construction Bank and Agricultural Bank of China, are conducting business as usual.
China's business press carried the story above on Wednesday.
