British, Chinese central banks agree currency swap line

By AFP | 23 Jun, 2013, 10.51AM IST
LONDON: 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 yesterday between BoE 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.

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“The maximum value of the swap is $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.”


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