The Reserve Bank of Australia has signed a new bilateral local currency swap agreement with the People’s Bank of China (PBOC).
In a statement released yesterday, the RBA said the agreement, which will continue for three years, follows the initial swap agreement which was signed in 2012.
The RBA explained the new agreement would allow for the exchange of local currencies between the two central banks of up to $40 billion or CNY200 billion.
“As with the initial agreement in 2012, the main purposes of this agreement are to support trade and investment between Australia and China, particularly in local-currency terms, and to strengthen bilateral financial cooperation,” the statement said.
“The agreement reflects the increasing opportunities available to settle trade between the two countries in Chinese renminbi (RMB) and to make RMB-denominated investments,” it said.
The RBA also added that other initiatives currently between Australia and China include the establishment of an official RMB clearing bank and the granting of a quota as part of the RMB Qualified Foreign Institutional Investor program in November 2014.
Stimulate new ideas. Stimulate new thinking. Top up your CPD and hear from industry experts with InvestorDaily’s Knowledge Centre. Keep up to date with the latest trends and reforms, all while adding to your CPD. Explore the knowledge centre Knowledge Centre now.
Despite the Australian economy’s ongoing rapid recovery, an Australian equity head believes GDP growth will “fade” in 2022. ...
The next financial year could see a “new record year” for dividends as the Australian economy continues its recovery from the COVID-19 p...