Google+
Рейтинг@Mail.ru
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.

 

 
| More
1214

Popular photos

Most popular

Is Joe Biden completely stupid?
Is Joe Biden completely stupid?
The US Vice-President goes to the Ukraine, reiterating the same idiotic comments his Government has been churning out for almost two months, namely slanderous anti-Russian rhetoric and threats of...
Western sanctions can bring Russia long-awaited infinite relief
Western sanctions can bring Russia long-awaited infinite relief
Imports of food for the Russian market have become commonplace. Russia imports more goods than it produces, and this trend lasts for years. The world's largest country with rich agricultural history...
Система Orphus