CITIC and ICBC complete first US$-RMB FX swap

CITIC Bank International and the Industrial and Commercial Bank of China (ICBC; 601398.SH, 1398.HK) have completed the first swap of Hong Kong dollars for renminbi, a major step forward toward the internationalization of the mainland’s currency, Reuters reported.The one-month swap was for US$8.85 million and was completed on Wednesday. Beijing has also modified regulations to give companies not involved in mainland trade greater access to renminbi-denominated funds: Banks and their clients can now obtain renminbi funds directly from each other rather than through a clearing bank that requires proof of a trade transaction. On the same day, US Federal Reserve Chairman Ben Bernanke said that China’s currency policy is a de facto export subsidy to Chinese firms, but warned the US Congress against taking "any strong action" against China.