China's foreign exchange market saw its transaction volume hit US$14.2-T in Y 2011, up 4 times from Y 2006, the Country's Forex regulator said Monday.

From Y 2007 to 2011, forex transaction volumes soared by an annual average of 40.3%, the State Administration of Foreign Exchange (SAFE) said in a statement.

The daily average transaction volume reached US$58.1-B in Y 2011, it said.

The SAFE has diversified forex trade and increased the number of Forex dealers to improve the market's ability to allocate financial resources, according to the statement.

China allowed the direct trading of the yuan against the Australian and Canadian dollars in November last year, following the introduction of the Malaysian ringgit and the Russian ruble into the inter-bank Forex market in Y 2010.

A total of nine foreign currencies, including the USD, HK$, Japanese Yen, EUR and GBP, can be traded on China's inter-bank foreign exchange market.

The SAFE said it will continue to facilitate the development of the Forex market to support China's economic growth.

Paul A. Ebeling, Jnr. Paul A. Ebeling, Jnr

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.