In another small step toward Yaun internationalization, the People’s Bank of China signed another bilateral local currency swap agreement with the Central Bank of the UAE on January 17th.

The amount of the agreement is 35 billion Yuan or 20 billion dirham. The effective period of the arrangement will be 3 years.  This agreement will help promoting bilateral financial cooperation, facilitating bilateral trade and investment, and maintaining regional financial stability.  In the long run, this agreement will lay down one more stone in the foundation of making Chinese RMB (Yuan) one of the international currencies.

Over the past a few years, the People's Bank of China has signed many of such bilateral currency swap agreements with different money authorities in the world.