The Reserve Bank of Australia signed a A$30-billion currency swap agreement with the People's Bank of China, a statement from Australia's central bank showed Thursday.
The agreement allows for the exchange of local currencies between the two central banks of up to A$30 billion or CNY 200 billion. It is for an initial period of three years and can be activated by either party, RBA said.
The agreement, signed by PBoC Governor Zhou Xiaochuan and RBA Governor Glenn Stevens in Beijing, are aimed at supporting trade and investment between Australia and China, particularly in local-currency terms, and to strengthen bilateral financial cooperation.
RBA said the agreement reflects the increasing opportunities available to settle trade between the two countries in Chinese yuan and to make yuan-denominated investments.
The agreement follows a decision by the Chinese authorities last November to allow convertibility between Australian dollars and Chinese yuan in the interbank market in China.
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