BRICS: China Trades Trillions of Yuan with 29 Countries
来源：cryptodnes.bg;发表于:2024-04-15;人气指数:56
Monday, April
15, 2024
BRICS: China Trades Trillions of Yuan
with 29 Countries
These bilateral currency swaps aim to
increase trade and investment opportunities by creating a safety net for local
currencies. Currency swaps, a common practice between central banks, allow
countries to exchange their currencies, reducing exchange rate risks and
maintaining flexibility in the use of the currency.
It is important to note that these swaps
will not involve the US dollar, which highlights the emphasis on local
currencies in all transactions. This approach ensures that central banks can
engage in significant exchanges using their respective currencies, thereby
encouraging active trading in local markets. China is also considering
including all BRICS countries in this currency swap initiative.
According to Pan Gongshen, governor of
the People's Bank of China, these currency swaps will serve as a valuable tool
to provide emergency liquidity during financial crises or banking failures,
benefiting both BRICS and other developing countries.
China is urging Asian countries to join
this agreement, emphasizing the mutual benefits for the participating
economies. A continuous exchange of currencies will help maintain the stability
and liquidity of local currencies by ensuring availability in case of need.
The move to a currency swap is in line
with the BRICS alliance's broader strategy to reduce dependence on the US
dollar. Gongshen highlighted the importance of China's currency swaps in
international efforts to ease IMF-led bailouts, further stressing their
importance to global financial stability.
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Source: cryptodnes.bg