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Japan and China agree $30 billion currency deal as bilateral relations enter ‘new era’

Japan and China have agreed a $30 billion currency swap deal to strengthen financial stability during their first bilateral summit in seven years.

Japan’s Prime Minister Shinzo Abe is on a 3 day state visit to China to take part in a formal Sino-Japanese summit which had previously ceased to take place amidst souring relations. 

Speaking to press Mr Abe said,

“From competition to co-existence, Japan and China bilateral relations have entered a new phase. Hand in hand with Premier Li, I would like to advance our ties forward. With President Xi Jinping, I would like to carve out a new era for China and Japan.”

The agreement, which will allow for the exchange of up to $30billion of currency until 2021, was made alongside a series of wide ranging bilateral arrangements, during Japanese Prime Minister Shinzo Abe’s visit to Beijing.

In a statement released following the agreement, the Bank of Japan (BOJ) said,

“With the strengthening economic and financial linkages between Japan and China, Japanese financial institutions have been expanding their renminbi-based businesses.

The BOJ also signed a separate memorandum of understanding with the People’s Bank of China to exchange information on offshore markets, reports Reuters.