Image: Reuters Berita 24 English - China's central bank announced on Monday that a temporary currency swap arrangement with Hong Kong h...
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| Image: Reuters |
Berita 24 English - China's central bank announced on Monday that a temporary currency swap arrangement with Hong Kong has been upgraded to a permanent arrangement and increased in amount from 500 billion yuan to 800 billion yuan ($119.40 billion).
According to a statement on its website, the deal, which was signed by the People's Bank of China (PBOC) and the Hong Kong Monetary Authority, is the PBOC's first standing swap agreement.
The improved agreement, according to the PBOC, could assist stabilise market expectations, offer long-term liquidity support for the Hong Kong market, and encourage the growth of Hong Kong's offshore yuan market.
The accord was reached as Hong Kong marked 25 years since it was put back under Chinese control.
"The return of Hong Kong to the motherland is being commemorated this year for the 25th time. The agreement's signing will support the long-term and successful growth of Hong Kong's financial industry and solidify Hong Kong's position as a major global financial hub "read the PBOC's separate statement.
During a rare visit to the international financial centre on Thursday, Chinese President Xi Jinping remarked that the city had "risen from the ashes" and overcame its difficulties.
China, according to Xi, would support Hong Kong's function as a centre of global trade and finance.
Mainland In a joint statement released on Monday, Chinese and Hong Kong regulators said they would also develop a new scheme to permit reciprocal access between the interest rate swap markets in Hong Kong and the mainland.
1 USD is equal to 6.7000 Chinese Yuan Renminbi.
