China and Brazil Central Banks to Agree on Currency Swap Deal

Foreign Ministry spokesman Hong Lei said Friday that the People’s Bank of China (PBC) and Brazil’s Central Bank are expected to sign a currency swap accord soon.

Hong made the remarks when asked to comment on remarks made on Thursday by Brazilian Trade and Industry Minister Fernando Pimentel.

Pimentel said Brazil hopes to sign a bilateral accord with China at next week’s BRICS summit to promote trade in their national currencies.

The two banks have reached an agreement on the bilateral currency swap accord, which is worth about 190 billion yuan (60 billion Brazilian reals), according to Hong.

He said the establishment of a China-Brazil currency swap mechanism will enhance bilateral financial cooperation, facilitate trade and safeguard financial stability.

The fifth summit for the leaders of BRICS (Brazil, Russia, India, China and South Africa) countries is scheduled for March 26 and 27 in Durban, South Africa.

via Xinhua

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza