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China’s Central Bank Signs Currency Agreement With BIS

China has agreed with the Bank of International Settlements to set up a liquidity arrangement for renminbi/yuan to support to other central banks at times of market fluctuation.


Bank of International Settlements says interest rates should be raised "decisively" to prevent global inflation turning into a bigger crisis.
The Bank of International Settlements, seen here, says interest rates should be raised "decisively" to prevent global inflation turning into a bigger crisis. File photo: Reuters.

 

Banking authorities in China have signed an agreement with the Bank for International Settlements to set up a liquidity arrangement for the Chinese currency – the renminbi/yuan – to support to other central banks during times of market fluctuations.

The People’s Bank of China (PBOC) said on Saturday the first five participants in the new set-up would include Bank Indonesia, the Central Bank of Malaysia, the Hong Kong Monetary Authority, the Monetary Authority of Singapore and the Central Bank of Chile.

Each participant will contribute a minimum of 15 billion yuan ($2.2 billion) or the US dollar equivalent, it said.

The BIS said in a separate statement that the funds could be contributed either in yuan or US dollars, and that they would be placed with the BIS, creating a reserve pool.

 

• Reuters with additional editing by Jim Pollard

 

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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