The last currency swap arrangement expired on September 2013, and Sino Japanese relations were at a low ebb on that day. In recent years, the territorial dispute and the tense situation around the Japanese war have led to the deterioration of relations between the two countries.
Two Japanese officials familiar with the agreement said China and Japan had begun discussions on restarting currency swap arrangements, one of which said the swap arrangement would be about 3 trillion yen ($30 billion), well ahead of the previous $3 billion.
In times of financial turmoil, currency swaps can act as a safety net by providing renminbi funds to Japanese banks operating in China or yen funds to Chinese companies.
In May, Chinese Premier Li Keqiang signed an article in Japan's Asahi News that China will sign a bilateral currency swap agreement with Japan. A Japanese source said the Chinese government was very anxious to resume the swap arrangement.
Japan's Kyodo News Agency said Tuesday that the two countries may announce the agreement in a financial dialogue in Beijing this month, but an official from the Japanese Finance Ministry said it was more likely to announce it at the upcoming summit of Chinese and Japanese leaders.

<>China and Japan seek to restart and expand currency swap

 

PREVIOUS:The automotive bearing industry is in the stage of competition and integration.        NEXT:Saudi Amy IPO was shelved