Economy

China signs currency swap deal with Uzbekistan

(Xinhua)
Updated: 2011-04-19 16:01

BEIJING - The People's Bank of China (PBOC), the country's central bank, said Tuesday that it has signed a 700-million-yuan ($106 million) currency swap agreement with the Central Bank of the Republic of Uzbekistan.

The agreement will last for three years and is extendable by mutual consent, according to a statement posted on the PBOC website.

Related readings:  China signs currency swap deal with New Zealand  China signs currency swap pact with Singapore  China signs 3.5b yuan currency swap agreement with Iceland  Asia's regional currency swap plan comes into effect

The swap is aimed at promoting bilateral trade, investment and financial cooperation, it said.

The PBOC said Monday that it had signed a 25-billion-yuan currency swap agreement with the Reserve Bank of New Zealand.

Since the onset of the world financial crisis in late 2008, China has also signed currency swap agreements with the Republic of Korea (ROK), Malaysia, Belarus, Indonesia, Argentina, Iceland and Singapore.

The central bank also signed a similar agreement with Hong Kong's monetary authority.

Analysts said the move would encourage traders to invest in the local currency as part of China's efforts to promote cross-border trade settlements in yuan, China's national currency.