BEIJING, Mar. 4-- China would introduce market makers into its foreign exchange market this year to help relieve pressure on the central bank, central bank officials said Thursday.

¡§Implementing a market-maker system will shift some responsibility(for the management of foreign exchange) from the central bank to the commercial banks, which will sharply reduce pressure on the central bank,¡¨ the China Securities Journal said.

The People¡¦s Bank of China would retain its role as the top player in the official foreign exchange market and may still intervene when trading becomes volatile, the newspaper said.

A central bank official confirmed media reports that selected commercial banks would be allowed to become U.S. dollar market makers in a pilot scheme this year. But he declined to give further details.

Being a market maker means a bank stands ready to step in and participate in a transaction when no other buyer or seller can be found.

Local media have reported that the government may let the country¡¦s big four State banks¢w the Bank of China, China Construction Bank, Industrial and Commercial Bank of China and Agricultural Bank of China¢w become market makers in U.S. dollar trading.

Currently, the official foreign-exchange market, which was set up in 1994, remains tightly controlled with banks conducting almost all trades and with the central bank the top player, keeping the yuan stable through intervention.

(Source: Shenzhen Daily-Agencies)