Canada becomes first yuan clearance hub in Americas

China and Canada agreed to a currency swap worth 200 billion yuan (US$32.6 billion), making the country the first yuan clearance hub in the Americas, part of $2 billion in deals signed on Monday.

Deals being inked after Premier Li Keqiang's meeting with Canadian Prime Minister Stephen Harper also include aviation and nuclear energy cooperation, better access to China for Canadian agricultural products and the purchase of Bombardier regional jets.

Under a memorandum of understanding, the countries will help set up the clearing banks, and allow the two banks to swap currencies to ease trade and investment. The yuan clearing bank would be the first in the Americas, and allow Canadian financial institutions to use the clearing bank to process payments for their customers in yuan.