Time to set up US-China forex swap agreement

IN the incomplete architecture of the developing multi-currency reserve system, one key element is missing: a swap line between the US and China.

It is time the world's two largest economies filled this lacuna by negotiating a Federal Reserve-People's Bank of China (Fed-PBOC) swap agreement in each other's currencies, with the aim of facilitating dollar and renminbi liquidity on international financial markets.

Mos…