China, Mongolia expand currency swap deal

BEIJING, March 21 (Xinhua) -- The People's Bank of China (PBOC), the country'scentral bank, announced Wednesday that it has signed supplementary currency swapagreements with the Bank of Mongolia, doubling the scale of a 2011 bilateral swapdeal.

The supplementary currency swap agreement allows the two central banks to swap 10billion yuan/2 trillion togrog (about 1.6 billion U.S. dollars), compared to 5 billion yuan/1trillion togrog agreed in 2011, the PBOC said in a statement on its website.

Both sides believe the extension will help maintain regional financial stability andfacilitate bilateral trade and investment between China and Mongolia, according to thePBOC statement.

Since the onset of the global financial crisis in late 2008, China has signed currencyswap agreements totaling 1.3 trillion yuan with 16 countries and regions, including theRepublic of Korea, Hong Kong, Belarus and Argentina, to reduce the use of the U.S.dollar in bilateral trade settlement and investment.

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