Economy

China signs currency swap deal with New Zealand

(Xinhua)
Updated: 2011-04-18 17:07

BEIJING - The People's Bank of China (PBOC), the central bank, said Monday that it has signed a 25-billion-yuan ($3.83 billion) currency swap agreement with the Reserve Bank of New Zealand.

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

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

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

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.