The Bank of England has revealed it is in talks with the People's Bank of China over a currency swap deal that could help ensure greater financial stability.
Outgoing Bank governor Mervyn King (pictured) met with PBC chief Zhou Xiaochuan in Beijing to discuss a reciprocal 3-year renminbi/sterling currency swap arrangement. The arrangement - which King said was a milestone between the two countries - would be used to finance trade and direct investment between the two countries and to support domestic financial stability should market conditions warrant. The move is also seen as helping further the gradual internationalisation of the renminbi, as China aims to make its currency a more significant player in global trade. The UK already ha...
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