PBOC chief seeks to deepen currency ties with Asian economies

People’s Bank of China (PBOC) governor Pan Gongsheng said the country will aim to boost currency cooperation with Asian economies to enhance financial stability in the region.

He spoke about the benefits of bilateral currency swaps in supporting trade and investment activities during a panel at China’s Boao Forum, without providing details. Pan added that Asian countries should cooperate to have a bigger say at the International Monetary Fund, and that China attaches high importance to financial risk prevention.

Bilateral currency swaps between central banks are financing arrangements in which one country’s central bank can exchange its own currency for another. China has signed deals with Asean member states, Japan and Korea under the Chiang Mai Initiative.

Pan on Monday (Mar 25) said that he’d continue efforts to open up China’s financial sector. He also underscored that the property market is on a “solid foundation”.

The central bank has taken several steps to shore up confidence in an ailing economy, including cutting the amount of money that banks need to keep in reserve. Analysts expect the PBOC to deliver two more cuts to the reserve requirement ratio this year. BLOOMBERG