China’s Central Bank, the People’s Bank of China (PBOC) has reached an agreement with Qatar on a 35 billion yuan ($5.7 billion) bilateral swap line, The Wall Street Journal (WSJ) reported on Tuesday, citing a statement from China’s Central Bank.
The PBOC has reportedly appointed the Industrial & Commercial Bank of China Ltd. as the clearing bank for the yuan in Doha, Qatar, in China’s latest efforts to globalize the use of the nation’s currency in the Middle East.
China has been actively promoting the use of its currency in global foreign exchange markets as it looks to increase international payments via the use of the yuan by partnering up with a number of nations in bilateral currency agreements.
China has been hard at work as it has set up a number of clearing facilities to promote the broader use of its currency outside of mainland China. Such clearing banks directly tap China’s domestic foreign exchange markets to supply the nation’s currency.