China renews currency swap agreement with Thailand

Tuesday, 23 December 2014 00:49 - - {{hitsCtrl.values.hits}}

BEIJING (Reuters): China has renewed its currency swap agreement with Thailand worth 70 billion yuan ($ 11.25 billion), the People’s Bank of China said on Monday. The current agreement with Thailand was due to expire on Monday.

Under the renewed pact, the central banks of the two countries will exchange millions of dollars worth of each other’s currencies to help finance trade and investment deals. China will build a rail network in Thailand and buy two million tonnes of its rice in deals agreed last week that signal a strengthening of relations as Bangkok’s ties with the West remain on ice after a May coup in the Southeast Asian nation. Beijing also has offered more than $3 billion in loans and aid to neighbouring countries including Thailand to improve infrastructure and production, and to fight poverty.