Want China Times, Xinhua 2013-10-11
China has
signed a 350 billion yuan (US$57 billion) currency swap agreement with the
European Union, marking a major step in internationalizing its currency.
The deal,
signed between the People's Bank of China and the European Central Bank on
Wednesday, aims to support bilateral trade and protect financial stability,
according to a statement on the PBOC website.
The
agreement lasts three years and can be extended if both parties agree, it said.
"The
new arrangement will provide more liquidity to the renminbi market in the euro
area, promote overseas use of the yuan, and help facilitate trade and
investment," the statement added.
So far
China has signed currency swap deals totaling 2.2 trillion yuan (US$358
billion) with 22 countries and regions to push the international use of its
yuan.
On Oct. 1,
China signed a 100 billion yuan (US$16.3 billion) currency swap agreement with
Indonesia and signed similar agreements with Hungary and Albania in September,
bringing China closer to making its currency fully convertible.
The
agreement with the EU indicates that China has signed currency swap deals with
developed nations instead of neighboring and developing countries.
"The
deal with the world's second-largest currency regulator means the increasing
international recognition of the Chinese yuan," said Zong Liang, deputy
chief of the Strategic Planning Research Institute under the Bank of China.
In
September, the yuan jumped to ninth in the latest survey by Bank for
International Settlements on foreign-exchange turnover, with its daily trading
more than tripling to US$120 billion from US$34 billion three years ago, when
it was ranked 17th.
"The
global increasing need for renminbi transactions is a natural choice as the
Chinese renminbi has a stable exchange rate and is more risk-proof,"
according to Guo Tianyong, a financial studies professor with the Central
University of Finance and Economics.
Meanwhile,
the deal will expand renminbi-based settlement, reducing reliance on the US
dollar, which can hedge against the risk of US possible debt default, Guo
added.
Renminbi coins and banknote. (Photo/CFP) |
China and Japan will start direct currency trading
"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.)
"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.)
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.