BEIJING - China's foreign exchange regulator said on Wednesday that it will increase the variety of foreign exchange derivative products to facilitate steady growth of exports and cope with currency risks.

The State Administration of Foreign Exchange (SAFE) said in a notice, effective as of Aug 1, on its website that it will strengthen supervision on trading of derivatives by banks to ensure that the products help companies deal with the risks.

The SAFE also said it will expand the variety of tools for managing currency risks with a focus on foreign exchange options, and add principal swap transactions for currency swaps.

And it will lower the entry threshold for companies developing foreign exchange options and simplify entry processes for banks' branches, according to the regulator.

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