The emergence stage of foreign exchange swap market (1980- 1985). Before 1979, China implemented a unified foreign exchange management system. All export earnings are sold to the state, and the use of foreign exchange by enterprises is arranged by the state plan. After the reform and opening up, China has implemented the foreign exchange retention system in foreign exchange distribution, and all localities, departments and enterprises have the right to use foreign exchange independently, but at the same time, some units have surplus foreign exchange and urgently need to use RMB; The structural imbalance of foreign exchange shortage in other units is an objective requirement for adjusting foreign exchange surplus and deficit in economic life.

With the approval of the state, following 1980 and 10, foreign exchange swap is allowed through China Bank and its branches, which indicates that the embryonic form of China's foreign exchange swap market has been formed, and then major cities have successively opened foreign exchange swap business. At that time, the units involved in foreign exchange adjustment were limited to state-owned and collectively owned enterprises and institutions; The scope of adjustment is foreign exchange retained by enterprises, institutions and local departments; The adjustment mainly encourages the import of materials needed for feed processing and textile production increase, as well as the import of instruments and equipment urgently needed for science and technology, culture and education, medicine and health, and industrial and agricultural production; The adjusted price is based on the internal settlement price of USD/RMB (1 USD is equivalent to 2.80 RMB), and is within the floating range of 10%, which is determined by the buyer and the seller through negotiation.

1At the end of 1985, a foreign exchange adjustment center was set up in Shenzhen, and then in several other special economic zones.