BoE confirms talks with China over currency swap

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 ...