CHINA, BRAZIL SIGN OFF ON CURRENCY SWAP ARRANGEMENT

BEIJING – The People’s Bank of China has announced a China-Brazil currency swap agreement worth RMB190 billion / BRL 60 billion. China is Brazil’s largest trading partner, having taken over from the US in 2009. The currency agreement is intended to enhance bilateral financial co-operation and trade flows, although in practice its significance is quite limited (in contrast to the swap arrangements for offshore RMB centres such as Hong Kong and Singapore). The latest swap arrangement adds to 19 already in existence, and is part of efforts to further RMB internationalisation.