The deal is aimed at accelerating the internationalization of China's currency, the yuan, and increase trade and investment between the country and the eurozone.
The People's Bank of China said on Thursday that it concluded the currency swap with the European Central Bank.
The agreement provides a maximum of 350-billion yuan, or about 56-billion dollars, to the ECB and 45-billion euros, or 60.8-billion dollars, to the PBC.
The deal is to last for 3 years with the possibility of extension if the banks consent to do so.
The agreement allows the banks to borrow currency from each other to provide funds to banks in China and eurozone countries in case of financial emergencies.
PBC officials say the deal will provide additional liquidity for Europe's yuan market and boost trade and investment involving the currency.
China has already set up currency swap lines with Singapore and Britain to internationalize the yuan .... http://www.youtube.com
