A polarization-diversity loop with a silicon waveguide with a lateral p-i-n diode as a nonlinear medium is used to realize polarization insensitive four-wave mixing. Wavelength conversion of seven dual-polarization 16-quadrature amplitude modulation (QAM) signals at 16 GBd is demonstrated with an optical signal-to-noise ratio penalty below 0.7 dB. High-quality converted signals are generated thanks to the low polarization dependence (≤0.5 dB) and the high conversion efficiency (CE) achievable. The strong Kerr nonlinearity in silicon and the decrease of detrimental free-carrier absorption due to the reverse-biased p-i-n diode are key in ensuring the high CE levels.