BEIJING, Dec. 10 -- China's foreign exchange regulator announced on Wednesday that it will facilitate financial institutions to enter the interbank foreign exchange market.

China's State Administration of Foreign Exchange (SAFE) said the regulation would promote a market-oriented and more transparent interbank foreign exchange market.

The advance-access permission for financial institutions to enter the interbank forex market will be scrapped, further allowing the market to play a key role.

SAFE said that it would strengthen supervision over interbank forex and clarify the trading rules.

The regulation will take effect on Jan. 1, 2015.