Britain, China set up three-year pound/renminbi swap line

The central banks of Britain and China have agreed to establish a three-year sterling/renminbi currency swap line, the Bank of England said in a statement on Saturday. The swap line, which has a maximum value of 200 billion yuan ($32.6 billion), is aimed at promoting trade between Britain and China and supporting domestic financial stability, the Bank of England said.
"In the unlikely event that a generalised shortage of offshore renminbi liquidity emerges, the Bank will have the capability to facilitate renminbi liquidity to eligible institutions in the UK," BoE Governor Mervyn King said. In addition to its agreement with the People's Bank of China, Britain already has swap lines with the US Federal Reserve, the European Central Bank and the Bank of Japan.