China signs currency swap pact with Singapore

Updated: 2010-07-23 19:58
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BEIJING - The People's Bank of China (PBOC), the central bank, said Friday that it has signed a 150-billion-yuan (US$22.12 billion) currency swap agreement with the Monetary Authority of Singapore (MAS).

The agreement has a three-year maturity and can be extended if both sides agree, according to the statement posted on the PBOC website.

The move is aimed at promoting bilateral trade and direct investment, it said.

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"The bilateral currency swap arrangement is a key pillar of cooperation between the PBOC and MAS to strengthen regional economic resilience and financial stability," the MAS, the central bank of Singapore, said in a statement on its website.

Chinese Vice Premier Wang Qishan and Singaporean Deputy Prime Minister Wong Kan Seng attended the signing ceremony held in Beijing.

Before the ceremony, the two officials jointly chaired a meeting about China-Singapore cooperation, and two more meetings featuring the Suzhou Industry Park in east China's Jiangsu Province and Tianjin Eco-City project, both of which are cooperation projects between the two nations.

Since late 2008, China has signed currency swap agreements with the Republic of Korea (ROK), Malaysia, Belarus, Indonesia, Argentina and Iceland, as well as Hong Kong.

The arrangements would provide yuan liquidity and facilitate cross-border trade settlement in the Chinese currency. Cross-border yuan trade settlement is now allowed in all countries and regions, after starting first in Hong Kong, Macao, and in 10 member states of the Association of Southeast Asian Nations (ASEAN).