Pravda.ru

News » Business

China and New Zealand reach currency swap agreement worth 25 billion yuan

18.04.2011 | Source:

Pravda.Ru

 

China and New Zealand signed a currency swap agreement worth 25 billion yuan ($3.8 billion) today, according to a statement posted on the People's Bank of China's website.

The agreement will last three years and is open to extension, the statement said. The aim is to help boost bilateral trade and investment as well as strengthen financial cooperation, the PBOC said.

China is seeking to promote greater use of the yuan in global trade and finance to reduce reliance on the U.S. dollar, which has weakened against all 16 major currencies since 2008, according to Bloomberg.

The facility gives the Reserve Bank the capacity to borrow RMB when financial market disruption makes it difficult for businesses to access RMB to settle transactions with Chinese businesses.

"While there is no need to use the facility right now, it is useful to have this capacity if markets were ever to become dysfunctional. In addition the signing of this swap line contributes to building the China-New Zealand relationship," Reserve Bank deputy governor Grant Spencer said, sharechat says.

 

 






Popular photos


Most popular

Russia will shoot down Turkish jets in Syria, Deputy Defense Minister says
Russia will shoot down Turkish jets in Syria, Deputy Defense Minister says
Deputy Defense Minister Anatoly Antonov said that Turkey had refused to confirm its agreement with the memorandum of flight safety in Syria and blocked a telephone hot line prior to the attack on the...
Turkey kills Russian military advisor in Syria - version
Turkey kills Russian military advisor in Syria - version
A Russian military adviser was killed in a mortar attack in Syria on February 1. According to sources in the Syrian army, the shelling could be conducted from the side of Turkey. The shelling of...
Рейтинг@Mail.ru Rambler_s_Top100_Service