CHINA-ECONOMY: RMB SWAP CENTRES
|
China and Switzerland's central banks concluded a bilateral currency swap agreement in Beijing on July 21, 2014, that advances the international use of the renminbi and boosts Switzerland’s hopes of becoming a trading hub for the Chinese currency. Signed in Beijing by Zhou Xiaochuan, Governor of the People’s Bank of China and Thomas Jordan, Chairman of the Swiss National Bank, the renminbi (RMB) and Swiss francs can be purchased and repurchased between the two central banks, up to a limit of Rmb150bn or SFr21bn. The deal comes amid fierce competition among western financial centres for renminbi business. Earlier this year, the PBoC struck deals with the Bundesbank in Frankfurt and the Bank of England in London which will make it easier for business to be settled in the Chinese currency in both centres.
|