Another “BRIC” thrown at dollar hegemony!

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China, S Africa sign currency swap deal

China’s central bank signed a currency swap agreement valued at 30 billion yuan ($4.9 billion) with the South African central bank on Friday.

The agreement lasts for three years, and can be extended upon agreement by both sides, said a spokesman for the People’s Bank of China (PBOC).

The deal aims to facilitate bilateral trade and investment as well as maintain regional financial stability, China’s Xinhua news agency reported.

Also, the South African Reserve Bank (SARB) has announced in a statement that the purpose of the agreement is to support trade and investment between South Africa and China, and also to act as a mitigating resource for short term balance of payment pressures.

The PBOC also signed swap agreements with Armenia and the Republic of Suriname in March.

To promote international use of the yuan, China has signed currency swap agreements with more than 20 countries and regions since the onset of the global financial crisis in late 2008.

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