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UK, China central banks sign S$42b swap deal

LONDON — Bank of England Governor Mervyn King and his Chinese counterpart Zhou Xiaochuan agreed to a three-year currency swap line to promote financial stability and trade between China and Britain.

The maximum value of the arrangement is 200 billion yuan (S$42 billion), according to a statement published by the United Kingdom central bank on its website yesterday. The People’s Bank of China put the sterling value at £20 billion (S$39.3 billion) in a statement posted on its website.

http://www.todayonline.com/business/uk-c...-swap-deal

this looks good for europe, hope they can slowly get out of their recession

This is not a loan. It is for trade and FX stability purpose. If they had done the USD swap "mechanism" with Asia in 97 we might not have a crisis.

RMB is internationalising. Like chinese shops that have been in operations but not formally 开张， by the time PBOC announce RMB is internationalised, it has already been in motion.