Chile's central bank has entered into a three-year currency swap with the People's Bank of China to boost trade links, and the two are also clearing a path for the use of the Chinese yuan in the South American country, the two banks said on Monday. The swap agreement will facilitate the exchange of a maximum of 2.2 trillion pesos ($3.6 billion) for three years, Chile's central bank said in a statement.
The agreement was announced during a visit to Chile by Chinese Premier Li Keqiang. China is also looking to set up a yuan clearing bank in Chile, which would be the first of its kind in South America, Li said in a presentation after meeting with Chilean President Michelle Bachelet.