Mongolia, China To Sign FX Swap Deal

The central bank of Mongolia is entering a currency swap agreement with the People’s Bank of China.

The central bank of Mongolia is entering a currency swap agreement with the People’s Bank of China, The Wall Street Journal reports. Financial terms of the contract, which will help ensure the stability of Mangolia’s local currency, have not been disclosed. The agreement will last for three years and will be extendable by mutual consent, adds Xinhua. The People’s Bank of China has already set up bilateral currency swap agreements with a number of central banks, including those of Hong Kong, South Korea, Malaysia, Indonesia, Belarus and Argentina. Nearly 7% of China’s foreign trade in the first quarter was carried out using yuan, up from 0.5% a year earlier.

Click here for the story from The Wall Street Journal.

Click here for additional coverage from Xinhua.