Money

China signs currency swap deal with Mongolia

(Xinhua)
Updated: 2011-05-06 16:28

BEIJING - The People's Bank of China (PBOC), the country's central bank, said Friday that it has signed a 5-billion-yuan ($769 million) currency swap agreement with the Central Bank of the People's Republic of Mongolia.

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

The swap is aimed at promoting bilateral trade and offering short-term liquidity to the two countries' financial systems, it said.

Since the onset of the world financial crisis in late 2008, China has signed currency swap agreements with 11 countries and regions with a combined value of 834.2 billion yuan.

Analysts said the moves will be of great significance in promoting cross-border trade settlements and investment using the yuan, China's currency.