(Dubai) – China and the United Arab Emirates have signed a currency swap agreement worth 20 billion dirhams, the People’s Bank of China said in a statement.
The agreement signed in Dubai was announced during Chinese Premier Wen Jiabao’s visit to UAE. The deal that will remain effective for three years is a measure to boost two-way trade and investment.
Being the world’s single largest exporting nation and the second largest importer; China in recent years has signed a series of such currency swap agreements with its key trading partners in a bid to boost internationalization of the use of the yuan in trade. Other countries that have signed similar deals recently include Thailand and South Korea.