Banking authorities in China have signed an agreement with the Bank for International Settlements to set up a liquidity arrangement for the Chinese currency – the renminbi/yuan – to support to other central banks during times of market fluctuations.
The People’s Bank of China (PBOC) said on Saturday the first five participants in the new set-up would include Bank Indonesia, the Central Bank of Malaysia, the Hong Kong Monetary Authority, the Monetary Authority of Singapore and the Central Bank of Chile.
Each participant will contribute a minimum of 15 billion yuan ($2.2 billion) or the US dollar equivalent, it said.
The BIS said in a separate statement that the funds could be contributed either in yuan or US dollars, and that they would be placed with the BIS, creating a reserve pool.
• Reuters with additional editing by Jim Pollard
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