Bank of England closes in on China currency dealSubmitted by Bob-45 on Sat, 02/23/2013 - 01:28
Sir Mervyn King, Governor of the Bank of England, is on the brink of striking a deal with the People's Bank of China which would cement the UK's role as the leading G7 trade hub for the world's fastest growing currency.
By Denise Roland, and agencies
2:03PM GMT 22 Feb 2013
The Bank of England expects to sign a final agreement to set up a three-year yuan-sterling swap line "shortly", during a meeting between Sir Mervyn and his counterpart Zhou Xiaochuan in Beijing.
European and US officials have been pressing China for years to do more to open up the yuan to market forces, saying its artificial weakness was one of the key imbalances of the global economy.
Beijing is slowly delivering, although it still keeps a tight rein on gains for the currency for fear it will weaken its export-powerhouse economy, which has been the biggest engine of global growth for a decade.