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British, Chinese central banks agree currency swap line

Published on Jun 23, 2013 12:08 PM

LONDON (AFP) - The Bank of England and the People's Bank of China have signed an agreement to establish a reciprocal, three-year sterling-yuan currency swap line, Britain's central bank announced.

The deal was agreed on Saturday between BoE governor Mervyn King, who steps down at the end of the month, and his counterpart Zhou Xiaochuan of the central People's Bank of China.

"The maximum value of the swap is 200 billion (yuan) renminbi (S$41.2 billion)," the BoE said in a statement.

"The swap line may be used to promote bilateral trade between the two countries and to support domestic financial stability should market conditions warrant."

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