URUMQI — A ceremony marking the start of a currency swap deal between China’s yuan and Tajikistan’s somoni was held on Dec 13 in Urumqi, capital of Northwest China’s Xinjiang Uygur autonomous region.
In September, the central banks of China and Tajikistan signed the currency swap agreement, which allowed the two sides to exchange 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 (around $470 million), will last for three years and can be extended if both sides agree.
The agreement is expected to further boost trade and investment and safeguard regional financial stability, said Shohrat Zakir, chairman of the Xinjiang regional government, at the ceremony.
China became the second-largest investor and third-largest trade partner of Tajikistan in 2014, customs data showed.