China and UK agree terms of currency swap

The Bank of England said on Saturday that it had agreed the terms of a Rmb200 billion currency swap with the People’s Bank of China, another step in the internationalisation of the renminbi.

The deal furthers London’s efforts to become a fully-fledged offshore renminbi-trading centre, such as Taiwan and Singapore. It also shows China is continuing its policy of opening up, despite its economic slowdown and a credit crunch in its banking sector.

“Renminbi internationalisation remains a part of a broader push by China to liberalise its financial system and to open its capital account,” said analysts at HSBC in a note.

The deal...