Australia's 30 billion dollar currency swap deal with China

[xdrive]

Australia's central bank has signed an agreement with its counterpart in China allowing for up to $30 billion to be exchanged between the two banks.


The purpose of the agreement between the Reserve Bank of Australia (RBA) and People's Bank of China (PBC) is to support investment between the countries, the RBA said.

It reflects the increasing opportunities available to settle trade between Australia and China in Chinese renminbi (RMB) and to make RMB-denominated investments, the RBA said.

The agreement, signed by RBA governor Glenn Stevens in Beijing on Thursday, is for an initial period of three years.

Treasurer Wayne Swan has welcomed the deal.

“This is an important symbolic step towards the internationalisation of the renminbi and another milestone in the continued deepening of the economic relationship between Australia and China,” he said, according to media reports.

RBA, China in $30bn currency swap deal | News | Business Spectator

 

[marshall]

Self-delete. Would nice to be able to delete double posted messages.

 

[Peacefull]

Australia's central bank has signed an agreement with its counterpart in China allowing for up to $30 billion to be exchanged between the two banks.


The purpose of the agreement between the Reserve Bank of Australia (RBA) and People's Bank of China (PBC) is to support investment between the countries, the RBA said.

It reflects the increasing opportunities available to settle trade between Australia and China in Chinese renminbi (RMB) and to make RMB-denominated investments, the RBA said.

The agreement, signed by RBA governor Glenn Stevens in Beijing on Thursday, is for an initial period of three years.

Treasurer Wayne Swan has welcomed the deal.

“This is an important symbolic step towards the internationalisation of the renminbi and another milestone in the continued deepening of the economic relationship between Australia and China,” he said, according to media reports.

RBA, China in $30bn currency swap deal | News | Business Spectator

If this is true it is big news especially if RMB is used to settle trade payments/investments.

 

[SinoChallenger]

Some wise Australians see the writing on the wall..... partnering with USA to contain China is futile is dangerous..... and made the right call. Remember when the USA announced marines deployment in Darwin (actually a backward deployment away from China), and immediately Indonesia announced it stood with China? Wow that backfired really badly for pro-USA forces. This one is gonna hurt USA no doubt about it.

Next we announce currency swaps with Mexico and Canada, and USA is completely surrounded!