Michael Dwyer & Jason Murphy
Australia will become more enmeshed in the Asian financial zone after the Reserve Bank signed a $30?billion currency swap arrangement with the Chinese central bank yesterday.
The historic agreement highlights the important role Australia is playing in what the Gillard government calls “the Asian century”, as the world’s fastest growing major economy integrates into global trade and financial markets.
The agreement, signed in Beijing by Reserve Bank of Australia governor Glenn Stevens and People’s Bank of China governor Zhou Xiaochuan, follows Beijing’s decision last November to allow convertibility between Australian dollars and Chinese yuan in the interbank market in China.
The currency swap deal with Australia is the largest that China has signed other than with Hong Kong and South Korea. It is also one of the first with a Western economy.
Read More: Historic $A pact seals China ties