China, Britain signs agreement on currency swap

Want China Times, Xinhua 2013-06-23

Mervyn King, governor of the Bank of England and Zhou Xiaochuan, governor of the People's Bank of China, have signed an agreement to establish a reciprocal three year sterling/renminbi currency swap line, according to an announcement on the Bank of England's website on Saturday night.

The maximum value of the swap is 200 billion yuan/20 billion pounds (US$32 billion). The swap line may be used to promote bilateral trade between the two countries and to support domestic financial stability, the British bank said. Governor Mervyn King said that it is a testament to the outstanding working relationships between the two banks that this swap line has now been signed.

The establishment of a sterling/renminbi swap line will support Britain's domestic financial stability. In the unlikely event that a generalized shortage of offshore renminbi liquidity emerges, the Bank will have the capability to facilitate renminbi liquidity to eligible institutions in Britain. "On behalf of the Bank, I am grateful to governor Zhou and the staff at the People's Bank of China, with whom it has been a pleasure to work," King said.

The agreement follows the announcement of discussions between the Bank of England and the People's Bank of China on 22 February.

Related Articles:

RMB on way to becoming global reserve currency: IMF official

BRICS Wrangle Over New Development Bank

China seals first free-trade deal with Switzerland

New Zealand, China May Allow Direct Currency Conversion for Trade

China and Brazil sign $30bn currency swap agreement

Boost for City as Sir Mervyn King does currency swap deal with Bank of China

China, South Korea to boost local currency usage under trade pact

China, Australia in talks over direct currency trading

Taiwan hopes to add RMB to foreign reserves within a year

China says Indonesia buys bonds in interbank market

African central banks included in RMB bond placement

China offers $20bn in loans to Africa

China and Brazil in $30bn currency swap agreement

China and Japan will start direct currency trading

Brics’ move to unseat US dollar as trade currency

"The U in Kundalini"- Oct 18, 2012 (Kryon channeled by Lee Carroll) - (Subjects: Kundalini, Unification, EU, Nobel Peace Prize 2012, Middle East, South America, Only 5 Currencies on Earth, Old Souls, Duality will dismiss, 3D Humanity will melt with Multi dimensional higher self, Global Unity… etc.)