China, Britain central banks agree on currency swap line
The deal was agreed Saturday between Bank of England governor Mervyn King, who steps down at the end of the month, and his counterpart Zhou Xiaochuan of the central People’s Bank of China.
The Bank of England and the People’s Bank of China have signed an agreement to establish a reciprocal, three-year sterling-yuan currency swap line, Britain’s central bank announced.
The deal was agreed Saturday between Bank of England governor Mervyn King, who steps down at the end of the month, and his counterpart Zhou Xiaochuan of the central People’s Bank of China.
“The maximum value of the swap is 200 billion (yuan) renminbi (US$32.6 billion),” the BoE said in a statement.
“The swap line may be used to promote bilateral trade between the two countries and to support domestic financial stability should market conditions warrant.”
Zhou and King met in February in Beijing for discussions on the swap line.
The City of London financial district launched an initiative in April on making the British capital a centre for yuan business.