CHINA is to open its first national foreign exchange centre in Shanghai next month, as part of moves to unify all swap exchange rates throughout the country.
This is in line with Beijing's determination to standardise the diverse swap rates being offered by the country's 100 existing swap exchange centres, and link them all using a satellite network to the new centre on Zhongshan Dong Road.
It is believed the opening of the centre is the first step to removing the official exchange rate.
Vice-Premier Zhu Rongji told The Asian Wall Street Journal last week China would introduce a partially convertible currency early next year.
Although he did not disclose the schedule, he said: ''But I can say [it will be] very, very early.'' According to an official of People's Bank of China in Shanghai, the operation of the National Foreign Exchange Centre's network will be similar to the system at the Shanghai Stock Exchange.
''Our motivation is to establish a nation-wide swap trading centre. The 100 regional swap centres will connect with the national centre by establishing satellite networks themselves,'' the official said.