The People's Bank of China (PBoC) has permitted currency swaps to be traded between the renminbi and five currencies – the US dollar, euro, yen, Hong Kong dollar and sterling, in the country’s interbank FX market. FX swaps were first introduced in 2005 by PBoC, but were allowed to only exchange principal sums, at the start and end of the swap, rather than interest streams. The new currency swaps ruling will now allow interest streams during the life of the swap. Domestic institutions currently permitted to operate in the interbank forward FX market are required to register with the State Administration of Foreign Exchange (SAFE) in order to trade in the new swaps market. Meanwhile, SAFE says it has given Deutsche Bank a $300 million quota for the Qualified Domestic Institutional Investor (QDII) scheme. A total of $18.59 billion in QDII quotas have been granted but only a fraction have actually been invested offshore as Chinese investors prefer to remain invested in domestic equities.