China's State Administration of Foreign Exchange (SAFE) is out on the wires stating that China will build open and competitive forex market with more participants and products and will improve FX risks hedging methods.

China, the world's second-largest economy as well as the largest trading nation, wants to internationalize the Chinese yuan or renminbi (RMB) in a bid to facilitate the reduction of transaction costs of international trade.

SAFE's comments come amid growing speculation that Yuan will drop beyond 7 per US Dollar in three months from now.