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China, Tajikistan sign currency swap deal to bolster trade

Updated: Sep 7,2015 4:32 PM     Xinhua

BEIJING — China and Tajikistan have signed a currency swap agreement for the Chinese yuan and Tajikistani somoni to boost trade and investment, the country’s central bank, People’s Bank of China (PBOC), said on Sept 7.

Under the agreement, central banks of the two sides will be able to exchange a series of payments in one currency for equivalent amounts in another to facilitate bilateral trade settlements and provide liquidity support to financial markets.

The deal, worth 3 billion yuan ($470 million), will last for three years and can be extended if both sides agree, the PBOC said in an online statement.

The PBOC expects the agreement to boost trade and investment and safeguard regional financial stability.

China became the second-largest investor and third-largest trade partner of Tajikistan in 2014, customs data showed.

The move also marked the latest step in China’s efforts to promote the internationalization of the yuan. The PBOC has reached similar agreements with more than 30 countries and regions with a total value surpassing 3 trillion yuan.