Hot Features
Premium
Customisable watchlists with full streaming quotes from leading exchanges, such as LSE, NASDAQ, NYSE, AMEX, Bovespa, BIT and more.
One of the last agreements to be reached by the newly enobled Governor King
Governor Zhou Xiaochuan and Governor Mervyn King, who will become a Lord once he leaves Threadneedle Street, have signed an agreement to establish a reciprocal 3‑year, sterling/renminbi (RMB) currency swap line. The maximum value of the swap is RMB 200bn. The swap line may be used to promote bilateral trade between the two countries and to support domestic financial stability should market conditions warrant.
This agreement follows the announcement of discussions between the Bank of England and the People’s Bank of China on 22 February 2013
Commenting, the outgoing Governor of the Bank of England argued that it was “a testament to the outstanding working relationships between the Bank of England and the People’s Bank of China (PBoC) that this swap line has now been signed. The establishment of a sterling/renminbi swap line will support UK domestic financial stability.
In the unlikely event that a generalised shortage of offshore renminbi liquidity emerges, the Bank of England will have the capability to facilitate renminbi liquidity to eligible institutions in the UK. On behalf of the Bank, I am grateful to Governor Zhou and the staff at the PBoC, with whom it has been a pleasure to work.”
Offshore RMB, widely denoted as CNH, refers to any RMB used outside of mainland China which trades on a free-floating basis. Liquidity can move freely between a number of other offshore centres, including Hong Kong (the H in CNH), London, Singapore and Taiwan.
