China to Enter Bilateral Currency Swap Agreement with Japan


China and Japan will enter a bilateral currency swap agreement according to an article written by Premier Li Keqiang that was recently published by the Japanese press.

According to the article published by the Asahi newspaper on 8 May entitled “Enabling Peaceful and Friendly Cooperative Undertakings Between China and Japan to Re-launch” (让中日和平友好合作事业再起航), China will also provide Japan with a quota for Renminbi Qualified Foreign Institutional Investors (RQFII).

“The reciprocal economic benefits between China and Japan are very strong…there is huge potential for enterprises from both countries to engage in cooperation in third-party markets,” wrote Li.

“During our next visit, we will witness the signing of a series of cooperative agreements in the areas of health, medical science, the service industry and social welfare, and China will execute a currency swap agreement with Japan, as well as announce quotas for Japanese Renminbi Qualified Foreign Institutional Investors.

“It can be said that mutually beneficial, joint-win Sino-Japanese cooperation faces fresh opportunities for quality increases and upgrades.”