China to Enhance Currency Exchange Agreements and Bolster Monetary Collaboration
China to Enhance Currency Exchange Agreements and Bolster Monetary Collaboration
BollywoodFever, March 27: The governor of China’s central bank announced on Wednesday that the bank is set to continue advancing currency swap initiatives and bolster monetary partnerships with Asian economies to safeguard regional financial stability.
During the Boao Forum for Asia’s annual conference, Governor Pan Gongsheng emphasized the significance of bilateral currency swaps in supporting trade and investment, highlighting their role as a valuable component of the global financial safety net.
“Bilateral currency swaps serve as a critical source of emergency liquidity during times of distress in the international financial markets and banking crises in certain countries,” he stated.
Governor Pan revealed that the central bank has established bilateral local currency swap agreements with the central banks and monetary authorities of 29 countries and regions, amounting to a total of approximately 4 trillion yuan ($553.49 billion).
He further advocated for Asian nations to strive for reforms in the International Monetary Fund’s (IMF) quotas and voting shares to better accommodate emerging markets.
Pan noted, “China’s bilateral currency swaps with select countries play a crucial role in the IMF-led international bailout relief efforts.” He referred to Argentina’s plan to utilize several billion dollars from IMF disbursements to repay a portion of its debt to China incurred through a currency swap line.
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