Switzerland, China agree swap boosting role of yuan


The Swiss and Chinese central banks signed a currency swap agreement in Beijing on Monday (July 21), marking an important step in the development of a market for yuan in Switzerland, the Swiss central bank BNS said.

The agreement, highlighting steps towards international use of the yuan, ensures that Swiss francs will be available in China and that yuan, also known as renminbi, will be supplied to financial centres in Switzerland.

The BNS statement said that the agreement was “an important step” for the renminbi business in Switzerland. The agreement permits the two central banks to buy up to a maximum of 150 billion yuan or 21 billion Swiss francs (17.3 billion euros, US$23.4 billion, S$29.9 billion). The deal was signed by the governor of the People’s Bank of China Zhou Xiaochuan and BNS president Thomas Jordan.

The BNS also obtained a quota of investment in yuan which opens the way for it to invest part of its currency reserves on the Chinese bond market. Under this arrangement, the Chinese central bank allows BNS a quota of 15 billion yuan or about 2.0 billion Swiss francs to invest on the Chinese interbank bond market.

In a separate statement, the Swiss finance ministry welcomed the agreement with China, saying it showed that Switzerland was playing an increased role in the internationalisation of the Chinese currency.

A free-trade agreement between China and Switzerland took effect on July 1. It is the first agreement of its type between China and a European country. China is the sixth-biggest export market for Switzerland, and the fourth supplier to it.

Switzerland hopes that with this agreement it can get ahead of other European countries, acting as a bridgehead into Europe for Chinese trade and companies, and also as a centre for finance in yuan. Switzerland is not a member of the European Union but has close trading relations with it.

The Swiss finance industry is also re-structuring its activities to compensate for constraints arising from new international agreements, and from US action clamping down on cash outflows into foreign banks.






Source : Channel News Asia | July 21, 2014

Thomas D’Innocenzi


About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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