BEIJING - China's foreign exchange market saw its transaction volume hit $14.2 trillion in 2011, up four times from 2006, the country's forex regulator said Monday.

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

The daily average transaction volume reached $58.1 billion in 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 interbank forex market in 2010.

A total of nine foreign currencies, including the US dollar, HK dollar, Japanese yen, euro and British pound, can be traded on China's interbank foreign exchange market.

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