Free Press Journal

China, UK extend deal on currency swap


Beijing: China’s central bank announced on Wednesday that it has extended an agreement on a reciprocal currency swap scheme with the Bank of England.

The maximum value of swap was expanded from 200 billion yuan ($31 billion) to 350 billion yuan, valid for three years and can be further extended when agreed, Xinhua news agency cited a statement by People’s Bank of China (PBOC).

The PBOC said the deal will provide more liquidity for RMB businesses in Britain, boost local yuan-denominated asset transactions and management, as well as facilitate trade and investment. The two sides signed the previous agreement in June 2013.