China Plans Yuan Pool To Counter Dollar's Reserve Currency Status
NDTV
China's central bank has signed an agreement with Switzerland based Bank for International Settlements to establish a yuan pooling scheme
China's central bank has signed an agreement with Switzerland based Bank for International Settlements (BIS) as part of Beijing's plans to establish a yuan pooling scheme starting with Indonesia, Malaysia, Hong Kong, Singapore and Chile to counter the dominance of the US dollar.
The arrangement aims to provide liquidity support for participating central banks during future periods of market volatility by creating a reserve pool, the People's Bank of China (PBOC), which signed the agreement with BIS last Saturday, said.
The establishment of the arrangement is conducive to meeting the reasonable international demand for the renminbi, and will make positive contributions to the enhancement of the regional financial safety net, the apex bank said.
The arrangement initially includes central banks in Asia and the Pacific, including Bank Indonesia, the Central Bank of Malaysia, the Hong Kong Monetary Authority, the Monetary Authority of Singapore and the Central Bank of Chile, the PBOC said.
