by swisscham in Bilateral Relations
The Swiss National Bank (SNB) and the PeopleÕs Bank of China (PBC) have entered into a bilateral swap agreement. The agreement was signed today in Beijing by the Governor of the PBC, Zhou Xiaochuan, and the Chairman of the SNB Governing Board, Thomas Jordan. In addition, the SNB has been granted a renminbi investment quota, which it can use to invest part of its foreign exchange reserves in the Chinese bond market. The PBC and SNB have enjoyed a constructive exchange of views for many years, and the regular contacts between the two central banks serve to instil a profound understanding of developments in monetary policy and on the financial markets in each otherÕs country. The signing of this bilateral swap agreement and the granting of a renminbi investment quota will further strengthen the collaboration between the PBC and SNB. It is a collaboration which highlights the increasingly close ties being forged between China and Switzerland.