PBOC: China, Japan to continue ‘close communication’ on currency swap, RMB clearing bank

BEIJING — China's central bank said on May 11 the country will continue "close communication" with Japan on bilateral currency swaps and setting up a renminbi (RMB) clearing bank in Tokyo.

The People's Bank of China (PBOC) made the remarks responding to reporters' questions on a slew of consensuses on cooperation reached between the two countries in the financial fields.

During an official visit to Japan, Premier Li Keqiang said China has agreed to grant Japan an RMB Qualified Foreign Institutional Investors quota of 200 billion yuan (more than $30 billion), and China holds a positive attitude toward establishing the RMB clearing bank in Tokyo.

The PBOC said that closer China-Japan financial cooperation will help the integrated development of financial markets of the two sides, promote the RMB's internationalization, support bilateral trade and investment, and bolster Asian and global growth.

Around 8 percent of the nearly $300 billion in bilateral goods trade was settled in RMB in 2017, PBOC data showed. China's cross-border RMB payment with Japan surpassed 450 billion yuan.

China's ongoing financial opening up will provide a lot of room for financial institutions from the two sides to expand cooperation, the PBOC said.

As major economies in Asia and the world, both China's and Japan's currencies have been included in the Special Drawing Right basket of the International Monetary Fund.