Bank of America (BofA) has traded currency swaps with an Asian grain and oil company, The Wall Street Journal reports. The four dollar-yuan currency swaps have a combined notional amount of about $10 million. As per the four one-year contracts, the corporate client will receive a yuan-denominated fixed interest rate of 3% and pay an unspecified dollar fixed rate in exchange. China’s currency regulator has approved banks to transact currency swaps directly with corporate clients from March 1, 2011, adds Bloomberg.
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