China and Britain sign currency swap deal

[yota691]

China and Britain sign currency swap deal

 

 

 

And China and Britain signed an agreement to establish a foreign exchange line for 3 years .. File photo

18:01

23

June

2013

London - Qena

And China and Britain signed an agreement to establish a line exchange currencies for a period of 3 years between the two countries, according to a statement posted on Sunday, on the website of the Bank of England.

The bank said, the maximum value of the exchange is 200 billion yuan, about 20 billion pounds, and it is possible that the exchange uses a line in the promotion of bilateral trade between the two countries and to support local financial stability.

According to the news agency "Xinhua" China, that Mervyn King, governor of the Bank of England, and Zhou Xiaochuan, governor of the People's Bank of China signed the Convention.

King said, if this agreement a testament to the good relations between the two banks, this line will support the domestic financial stability in Britain, expressing his gratitude to Zhou and individuals working in the People's Bank of China, who are happy to work with them.

 

[SnowGlobe7]

Why would they do this?

 

I get the feeling that this is prob done a lot...so why is it in the news?

[pattyangel]

Pure dominance on China's part.  This is what China's been aiming for. 

[HughJeffin Byrd]

Why would they do this?

 

I get the feeling that this is prob done a lot...so why is it in the news?

Because they are bypassing the dollar, "the world reserve currency" thus another domino that falls...

[sandfly]

THANKS