The People’s Bank of China and the Bank of England have today announced that they have signed an agreement to renew the existing reciprocal sterling/renminbi (RMB) currency swap line for a further three years. The maximum value of the swap line remains unchanged at RMB350bn.
Commenting, the Governor of the Bank of England said: “The Renminbi’s role in global trade and capital flows continues to increase. The renewal of this swap line reflects a continued commitment by the Bank of England and the People’s Bank of China to support an effective and resilient renminbi market in the city of London - the leading centre for Renminbi trading outside of greater China.”
Notes to editors
- The original reciprocal 3-year, sterling/renminbi currency swap line, for maximum value RMB 200bn, was signed in June 2013. News release, ‘People’s Bank of China swap line’, June 2013.
- The sterling/renminbi currency swap line was last renewed in October 2015. News release, ‘People’s Bank of China swap line’, October 2015.
- Offshore RMB, widely denoted as CNH, refers to any RMB used outside of mainland China which trades on a free-floating basis. Liquidity can move freely between a number of other offshore centres, including Hong Kong (the H in CNH), London, Singapore and Taiwan.