Tracking China’s currency swap deals with other countries and reducing dependence of US Dollar for international trade.
“China and Brazil have agreed a currency swap deal in a bid to safeguard against any global financial crisis and strengthen their trade ties.”
“In March this year, it signed a swap deal with Australia worth up to A$30bn ($31bn; £20bn) to promote bi-lateral trade and investment. It has also inked currency pacts with Hong Kong and Japan.”
“Analysts said that Beijing has been trying to push for trade to be settled in yuan, rather than in US dollars, as part of its plans to seek a more global role for its currency.”
““The motivation is to be less reliant on the US dollar,” Sean Callow, chief currency strategist at Westpac, told the BBC.”
“Mr Callow added that with an increasing number of economies signing such agreements with China, its plans for a more global role for the yuan had received a major boost.“