Britain, China to sign currency swap agreement soon

LONDON - The Bank of England said on Friday it would sign a three-year renminbi-pound swap agreement with China's central bank soon.

The central bank of Britain said on its website that the two sides would work together to facilitate discussions on signing the agreement.

The currency swap agreement would be used to finance trade and direct investment between China and Britain, the statement said.

Bank of England Governor Mervyn, who is on an official visit to China and met People's Bank of China Governor Zhou Xiaochuan on Friday, said that the agreement will also help support Britain's domestic financial stability.

London has been vigorously promoting its role in offshore RMB (renminbi) business with the aim to become an offshore RMB center. The City of London launched an initiative to facilitate this goal in April last year.