10/11/2013, 00.00
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An increasingly international Yuan: currency exchanges with the European Central Bank

Agreement for three years for the exchange of up to 45 billion EUR and 350 billion Yuan. A step towards full convertibility of the Chinese currency.

Beijing ( AsiaNews / Agencies) - The Chinese central bank (People's Bank of China, PBOC ) has signed an agreement with the European Central Bank (ECB ) for a currency swap line, widening even more the use of the Yuan Renminbi in the international community.

The agreement, valid for three years, allows the ECB to access up to 350 billion Yuan (42,276,400,000 Euro) while the PBOC has access to up to 45 billion euro . The swap line will allow central banks to buy and sell yuan and euro from each other.

The spread of the yuan will be possible throughout the euro area. The PBOC said that the move will allow the use of the Chinese currency in foreign markets, facilitating trade and investment.

In value terms, the agreement with the ECB is third in terms of the volume of currency , after that with Hong Kong ( 400miliardi Yuan ) and South Korea (360 billion Yuan).

According to some analysts , the Yuan will be fully convertible within five years.


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