21 Billion UK China Currency Deal

21 Billion UK China Currency Deal.

A new deal has been agreed and signed between the Bank of England (BoE) and the People’s Bank of China which will boost trade between the two nations. In a new currency swap deal the UK will become the centre for Chinese currency which is not yet exchangeable into all currencies.

As it stands now British Banks hold 35bn yuan which is China’s currency and the new deal will allow banks to swap currencies to allow for local currencies to be used for trade rather than in US dollars.

The deal will be worth 200bn yuan (£21bn).

Our View

Great deal to reinforce relations with China and setting London ahead even further as the financial centre of the World.   This is good for China providing exchange and trade access to investment funds not just from London but access to Europe.

We sincerelu hope Mr Cameron keeps up the fantastic work to build trade links with the soon to be super economies of China, India and Brazil.