RMB interest rate swap

RMB interest rate swap

Rate swap refers to the financial agreement, entered into by both parties of transaction for interest calculation with agreed RMB principal and rate and for interest exchange in certain period of the future. The reference interest rate shall be the ruling market rate issued by the National Inter-bank Funding Center (hereinafter referred to as NIFC for short), authorized by People’s Bank of China, or the benchmark interest rate issued by People’s Bank of China, subject to the agreement by both parties. The participating institutions are the members of the inter-bank market, which are endowed with the qualification of rate swap business.