Arab Today, arab today china lends first foreigndenominated funds under currency swap
Last Updated : GMT 01:30:09
Arab Today, arab today
Arab Today, arab today

China lends first foreign-denominated funds under currency swap

Arab Today, arab today

Arab Today, arab today China lends first foreign-denominated funds under currency swap

China's central bank
Beijing - XINHUA

 China's central bank on Friday lent 400 million Korean won to support trade settlement financing for Chinese importers of goods from the Republic of Korea (ROK), marking its first use of foreign currency under currency swap agreements.
The small symbolic move, announced by the People's Bank of China (PBOC) on its website, marks a shift in the world's second-largest economy, where policymakers hope enterprises will increase the use of the renminbi and other alternative currencies to the U.S. dollar in trade and investment settlement.
A Chinese bank borrowed the first Korean won-denominated funds under the currency swap line between the PBOC and the Bank of Korea, the ROK's central bank, then granted the won-denominated loans to a Chinese company to make payments for ROK imports.
Under the currency swap agreement, the PBOC's Friday lending in Korean won is equivalent to some 2.4 million yuan (about 390,000 U.S. dollars).
"The first use of Korean won funds by the PBOC has boosted cooperation under the bilateral currency swap agreement," the PBOC said in a statement, adding that Chinese and Korean enterprises could reduce the costs of financing and currency exchange through the swap.
Beijing and Seoul extended their currency swap agreement for another three years in October 2011, doubling the value of the deal to 360 billion yuan from the previous 180 billion yuan.
The PBOC and the BOK agreed in December 2012 to use the swap line to support trade settlement in each country's respective currencies for domestic companies.
China has become the ROK's largest trading partner, with a bilateral trade value of 274.2 billion U.S. dollars last year.
Under the agreement, Chinese firms are able to borrow Korean won funds for trade settlement from domestic commercial banks, to which the PBOC will lend the Korean won funds through the currency swap line with the BOK, or vice versa.
Since 2009, the PBOC has signed 23 currency swap agreements worth 2.5 trillion yuan with foreign central banks to help maintain regional financial stability and facilitate bilateral trade and investment.
Those currency swaps serve as an alternative to the U.S. dollar and offer extra liquidity support to signee countries apart from their foreign reserves.
The PBOC said it will work closely with overseas monetary authorities, including the BOK, in the future to let currency swaps play a more positive role through the wider use of local currencies in bilateral trade and investment.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china lends first foreigndenominated funds under currency swap Arab Today, arab today china lends first foreigndenominated funds under currency swap

 



Arab Today, arab today
Arab Today, arab today Heart of Turkish Riviera is Alluring Seaside Escape

GMT 11:11 2017 Tuesday ,28 March

Heart of Turkish Riviera is Alluring Seaside Escape
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Russia, Iran ink economic deals

GMT 08:03 2017 Wednesday ,29 March

Russia, Iran ink economic deals
Arab Today, arab today Media host gives priority to problems of people

GMT 07:00 2017 Tuesday ,28 March

Media host gives priority to problems of people
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Disaster costs nearly double to $175bn

GMT 10:42 2017 Tuesday ,28 March

Disaster costs nearly double to $175bn
Arab Today, arab today Campaign fights sexual harassment in Egypt

GMT 11:14 2017 Tuesday ,28 March

Campaign fights sexual harassment in Egypt
Arab Today, arab today Trump moves to roll back Obama climate measures

GMT 08:39 2017 Wednesday ,29 March

Trump moves to roll back Obama climate measures
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Mercedes, VW recall million vehicles in China

GMT 09:16 2017 Wednesday ,29 March

Mercedes, VW recall million vehicles in China
Arab Today, arab today Uber grounds self-driving cars

GMT 09:11 2017 Monday ,27 March

Uber grounds self-driving cars
Arab Today, arab today Trump poised to roll back climate protections

GMT 09:28 2017 Tuesday ,28 March

Trump poised to roll back climate protections

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 11:10 2017 Monday ,27 March

Trump to roll back Obama clean power plan

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 11:55 2017 Wednesday ,29 March

Need ‘gymspiration?’ The top fun fitness bloggers

GMT 09:02 2017 Thursday ,23 March

Laptop ban sparks ire

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 05:17 2017 Wednesday ,29 March

Samsung to sell refurbished Galaxy Note 7s

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday