Article 1 These Provisions are formulated in order to improve and develop the foreign exchange swap market, speed up the horizontal financing of foreign exchange funds and strengthen the macro-control of the foreign exchange market. Article 2 The State Administration of Foreign Exchange is the administrative organ of the foreign exchange market. Article 3 Foreign exchange transactions in the foreign exchange market shall abide by national laws, regulations and rules. Article 4 The foreign exchange swap business in the foreign exchange swap market shall be handled by the foreign exchange swap center.

The foreign exchange swap center is a legal foreign exchange trading institution that operates foreign exchange swap business under the leadership and management of the State Administration of Foreign Exchange. Article 5 A foreign exchange adjustment center may charge a handling fee from the buyer and the seller when handling foreign exchange adjustment business. The collection standard of handling fees shall be determined by the State Administration of Foreign Exchange in consultation with relevant departments. Article 6 The functions of the foreign exchange market center are:

(1) Organize market transactions;

(2) Accepting applications for foreign exchange trading;

(3) handling transactions;

(4) Supervise the delivery and settlement of buyers and sellers;

(5) Providing information and services;

(six) the preparation of foreign exchange swap statistics and market analysis;

(seven) accept other business entrusted by the State Administration of foreign exchange. Article 7 With the approval of the State Administration of Foreign Exchange, the foreign exchange market center may conduct foreign exchange transactions between RMB and US dollars, Hong Kong dollars, Japanese yen, British pounds, German marks and French francs. The foreign exchange market itself may not conduct foreign exchange transactions. Article 8 With the approval of the State Administration of Foreign Exchange, the following foreign exchange can be sold in the foreign exchange swap market: retained foreign exchange, foreign exchange of foreign-invested enterprises, donated foreign exchange and other foreign exchange approved by the State Administration of Foreign Exchange. Article 9 With the approval of the State Administration of Foreign Exchange, foreign exchange that conforms to the guiding sequence of foreign exchange allocation can be bought through the foreign exchange market. Article 10 Individual foreign exchange transfer shall be handled in accordance with relevant state regulations. Article 11 With the approval of the State Administration of Foreign Exchange, financial institutions may buy and sell foreign exchange for customers in the foreign exchange market. Article 12 The foreign exchange swap price (market exchange rate) fluctuates according to the market supply and demand. Thirteenth foreign exchange swap business can be carried out across regions. All localities and departments shall not interfere with the horizontal circulation of foreign exchange funds by administrative means. Fourteenth it is strictly forbidden for all regions and units to buy and sell foreign exchange outside the foreign exchange swap center. It is strictly forbidden for all units to change the use of purchased foreign exchange without authorization. Fifteenth all regions and units must strictly implement these provisions, and offenders will be punished according to the relevant provisions of foreign exchange management. Article 16 These Provisions shall come into force as of the date of promulgation. The State Administration of Foreign Exchange shall be responsible for the interpretation of these Provisions.