THE country will continue to develop existing currency derivatives this year, said the head of the nation’s foreign-currency exchange yesterday.

“We will further develop existing foreign-exchange derivatives this year according to market demand,’’ Xie Duo, president of China Foreign Exchange Trade System (CFETS), said. New types of derivatives may not be introduced this year, Xie said.

A variety of derivative products may help the nation’s exporters and importers better hedge their currency risks. The yuan’s gains against the U.S. dollar have stalled after an increase of more than 4 percent this year.

Established in 1994, the exchange offers a currency trading platform, on which member banks can trade the yuan and foreign-exchange swaps and forwards.

The Shanghai-based exchange, also known as the National Interbank Funding Center, started offering brokerage services to the currency market from May 5, Xie said.

Tullett Prebon Sitico (China) Ltd. and CFETS-ICAP International Money Broking Co., the largest currency and bond derivatives brokers in China, suspended quotes for onshore foreign exchange swaps in February.

“The quoting service provided by the center itself will increase the market’s liquidity and balance supply and demand, paving the way for more derivative products,’’ said Liu Dongliang, a foreign exchange analyst at China Merchants Bank in Shenzhen.

Bank of China Ltd.’s Hong Kong branch widened the spread between the cost of buying and selling Hong Kong dollars for the yuan to 0.75 percentage point from 0.10 point May 5 as CFETS raised transaction fees with the bank on the same day, said Clarina Man, spokeswoman at the bank.

Xie confirmed the fee increase. He said it was possible to interpret it as intended to stem flows of funds from Hong Kong into the mainland. (SD-Agencies)