The central banks of China and Switzerland have signed a pact to establish a yuan trading center in Zurich. The deal is expected to increase the number of European transactions in yuan.
Switzerland’s central bank said on Wednesday it had signed the agreement with the People’s Bank of China. The deal was concluded during the visit of Chinese Prime Minister Li Keqiang to the World Economic Forum in Davos.
According to the agreement, Switzerland will receive a quota of about $8 billion (50 billion Yuan).
“It [the arrangement] will promote the use of the renminbi by enterprises and financial institutions in cross-border transactions, and promote facilitation of bilateral trade and investment,” the Swiss National Bank said in a statement.