May 08 08:09
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- China, Japan to Negotiate Currency Swap Agreement: Li Keqiang
China announced Tuesday it will negotiate a bilateral currency swap agreement with Japan during an official visit by Premier Li Keqiang this week.
China will also announce the quota it allocates to Japan for the Renminbi Qualified Foreign Institutional Investor program (RQFII), which allows overseas funds to invest in China’s securities market, Li wrote in an article published in Japan’s Asahi Shimbun ahead of his trip to Tokyo starting Wednesday, according to the official website of the Chinese government.
China and Japan last signed a currency swap agreement in 2002. The deal allows the two countries to provide up to $3 billion equivalent in yuan or yen to each other for financing bilateral trade and direct investment. The contract was not renewed in 2013 amid rising tension due to a territorial dispute over the Diaoyu Islands, which Japan calls the Senkaku Islands.