China, Ukraine sign 15b yuan currency swap deal
BEIJING, June 26 – The central banks of China and Ukraine today signed a three-year currency swap worth 15 billion yuan (RM7.55 billion), signalling Beijing’s persistent efforts to make the yuan a global currency.
The currency swap aims at “strengthening the bilateral financial cooperation, promoting trade and investment and maintaining the regional financial stability,” the People’s Bank of China (PBOC) said on its website. www.pbc.gov.cn.
The currency deal could be extended once it expires, the statement said.
China has signed currency deals with nearly 20 trader partners totalling 1.46 trillion yuan.
This is the latest in a string of bilateral currency agreements that China has signed in the past three years to promote use of the yuan in trade and investment.
China launched a cross-border yuan trade settlement programme as a pilot scheme in 2009 and gradually expanded it to cover trade between all Chinese provinces and all foreign countries.
China has also added new currency pairs in its onshore foreign exchange trading, most recently the Australian dollar and Canadian dollar.
China’s ultimate goal is to make the yuan a freely convertible currency that could rival the US dollar and euro in global trade, investment and reserves. – Reuters