The Bank of England has revealed it is in talks with the People's Bank of China about agreeing a currency swap deal to help ensure greater financial stability.
Outgoing Bank governor Mervyn King (pictured) met with Governor Zhou Xiaochuan in Beijing to discuss a reciprocal three-year renminbi/sterling currency swap arrangement. The arrangement - which King said was a milestone between the two countries - would be used to finance trade and direct investment between the two countries and to support domestic financial stability should market conditions warrant. The UK already has numerous swap deals in place which were utilised during the height of the financial crisis, including with the US and Canada. Although the deal has not been signed ...
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