BOC looks to offset forex losses
20 June 2008
Bank of China (BOC) Chairman Xiao Gang said the bank would strengthen domestic operations to offset foreign exchange losses, the South China Morning Post reported. Blaming those lossses for a lower return on equity than rival banks including Industrial and Commercial Bank of China and China Construction Bank, Xiao said BOC would step up efforts to develop its domestic currency business. The renminbi has gained nearly 6% since the beginning of the year. A lack of renminbi futures makes it difficult for mainland banks to hedge against currency risks.