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China to promote currency swaps, strengthen monetary cooperation

Published 03/27/2024, 01:18 AM
Updated 03/27/2024, 01:20 AM
© Reuters. Paramilitary police officers stand guard in front of the headquarters of the People's Bank of China, the central bank (PBOC), in Beijing, China September 30, 2022. REUTERS/Tingshu Wang/File Photo
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BOAO, China (Reuters) - China's central bank will continue to promote currency swaps and strengthen monetary cooperation with Asian economies to maintain regional financial stability, the bank's governor said on Wednesday.

Bilateral currency swaps can facilitate trade and investment and are a useful addition to the global financial safety net, Governor Pan Gongsheng told the annual gathering of the Boao Forum for Asia.

"Bilateral currency swaps can provide emergency liquidity support in times of turmoil in international financial markets and banking crises in some countries," he said.

The central bank has signed bilateral local currency swap agreements with the central banks and monetary authorities of 29 countries and regions, with the total size of about 4 trillion yuan ($553.49 billion), according to Pan.

Asian countries should also push reforms of quotas and voting shares of the International Monetary Fund (IMF) to enhance the treatment of emerging markets, said Pan.

"China's bilateral currency swaps with selected countries also formed an important part of IMF-led international bailout relief package," Pan added.

© Reuters. Paramilitary police officers stand guard in front of the headquarters of the People's Bank of China, the central bank (PBOC), in Beijing, China September 30, 2022. REUTERS/Tingshu Wang/File Photo

Argentina had planned to tap several billion dollars in disbursements from the IMF to repay China part of the money it borrowed through a currency swap line, Reuters reported last year.

($1 = 7.2269 Chinese yuan)

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