FX VOICE: What the China/UK FX swap means for RMB trade
The Bank of England and the China's central bank will sign a three-year FX swap agreement. Will this increase the use of renminbi for trade in the UK and Europe and what more needs to be done? CT asks the experts.
Dariusz Kowalczyk, senior economist, Asia ex-Japan, Credit Agricole CIB (pictured):
The deal would add the UK to the list of almost 20 markets with such lines. It would allow the Bank of England to purchase Chinese government bonds in the Mainland market and diversify its reserves into the renminbi. It would also offer a backstop liquidity provision to the growing renminbi market in London.
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