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China and EU Signed a Bilateral Currency Swap Agreement

Oct 11, 2013 13:04 IST

China on 10 October 2013 signed a 350 Billion Yuan (45 billion Euro) currency swap agreement with the European Union, marking a major step in internationalising its currency.

The agreement signed between the People's Bank of China (PBOC) and the European Central Bank (ECB). The pact aimed to support bilateral trade and protect financial stability.

The agreement lasts three years and can be extended if both parties agree.

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.

So far China has signed currency swap deals totaling 2.2 trillion Yuan (358 billion US Dollars) with 22 countries and regions to push the international use of its Yuan.

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