The State Administration of Foreign Exchange (SAFE) has given the nod for the Export-Import Bank of China to participate in forward exchange transactions in the country's inter-bank market, according to a bank statement Friday.

The Exim Bank, a state policy lender that serves foreign trade and overseas economic cooperation, said a large part of its business is affected by foreign exchange fluctuations.

China's central bank has been allowing a wider floating band for the country's currency, yuan or Renminbi, to trade against other currencies amid steady foreign exchange reform. The yuan can now move up or down 0.3 percent against the US dollar and 3 percent against non-dollar currencies around their daily opening levels.

The Exim Bank statement said the bank will open forward exchange transactions at the earliest date to avoid risks brought by exchange rate fluctuations to both itself and its enterprise clients.

Source: Xinhua