The central banks of China and Switzerland have struck a bilateral currency swap agreement, a move that advances the international use of the renminbi and boosts Switzerland’s hopes of becoming a trading hub for the Chinese currency.

中国和瑞士两国央行达成了双边本币互换协议，此举推进了人民币的境外使用，也提振了瑞士成为人民币交易中心之一的希望。

Under the terms of the deal, signed in Beijing on Monday by Zhou Xiaochuan, governor of the People’s Bank of China, and Thomas Jordan, chairman of the Swiss National Bank, renminbi and Swiss francs can be purchased and repurchased between the two central banks, up to a limit of Rmb150bn or SFr21bn.

根据中国人民银行(PBoC)行长周小川和瑞士央行(Swiss National Bank)行长托马斯•约尔丹(Thomas Jordan)周一在北京签署的协议，两家央行之间可以购买和回购人民币和瑞士法郎，上限为1500亿元人民币或210亿瑞士法郎。

The deal comes amid fierce competition among western financial centres for renminbi business. Earlier this year, the PBoC struck deals with the Bundesbank in Frankfurt and the Bank of England in London which will make it easier for business to be settled in the Chinese currency in both centres.

这份协议达成之际，西方各金融中心正在激烈争夺人民币业务。今年早些时候，中国央行与位于法兰克福的德国央行(Bundesbank)和位于伦敦的英国央行(BoE)分别达成协议，为企业在这两个金融中心用人民币结算提供便利。

The SNB said in a statement that the swap agreement was “a key prerequisite for the development of a renminbi market in Switzerland”, adding that it highlighted the increasingly close ties being forged between the two states. Last year, Switzerland became only the second European country after Iceland to sign a free trade deal with China.

瑞士央行在一份声明中表示，该本币互换协议是“在瑞士发展人民币市场的一个关键先决条件”，并补充称，它突显了两国之间日益密切的联系。去年，瑞士继冰岛之后，成为第二个与中国签署自由贸易协定的欧洲国家。

The PBoC said that the deal would “promote greater convenience of trade and investment between the two countries, provide further liquidity support to Switzerland’s renminbi market, and boost overseas use of the renminbi”.

中国央行表示，双边本币互换协议的签署将“推动两国贸易和投资的便利化，还可为瑞士人民币市场的进一步发展提供流动性支持，促进人民币的境外使用”。

Renminbi trading represents a little more than 1 per cent of activity in the $5tn-a-day foreign exchange spot market, but its share has climbed steadily. China has reached bilateral currency swap lines with around 25 global central banks in a bid to promote international use of the renminbi.

在日交易量达到5万亿美元的外汇现货市场，人民币交易量略高于1%，但其份额在不断攀升。为了促进人民币的境外使用，中国已经与全球大约25家央行达成了双边本币互换额度。

Most of these lines have never been used, but they could prove useful in the event of financial turmoil. In 2008, US dollar funding costs soared forcing banks to pull back from trade finance and causing China’s foreign trade to tumble. Bilateral swap lines help to reduce the reliance on the dollar of the countries involved.

这些额度多数从未用过，但在遭遇金融风暴时它们可能被证明有用。2008年时，美元融资成本飙升，迫使各银行缩减贸易融资，造成中国外贸大跌。双边本币互换额度有助于减少有关国家对美元的依赖。

As part of the agreement, the PBoC also granted the SNB an investment quota for the Chinese interbank bond market worth Rmb15bn, or a little more than SFr2bn.

作为协议的一部分，中国央行还授予瑞士央行150亿元人民币（略多于20亿瑞士法郎）的中国银行间债券市场投资额度。

The SNB said that this would allow it to diversify its foreign currency reserves, which have swelled to SFr452bn in the last two and a half years. The steep increase follows the central bank’s decision to stop the Swiss franc from appreciating beyond SFr1.20 per euro, in the face of haven inflows sparked by the concerns about the stability of the eurozone.

瑞士央行表示，这将让它得以分散外汇储备，过去两年半时间里，瑞士的外汇储备膨胀至4520亿瑞士法郎。出现这一大幅增长之前，瑞士央行决定阻止瑞士法郎的汇率升至超出1欧元兑1.20瑞士法郎的水平。当时，对于欧元区稳定的担忧，引发大量资金流向被视为避风港的瑞士。

At the end of the first quarter, the SNB held 48 per cent of its foreign currency reserves in euros, 26 per cent in dollars, 8 per cent in yen, and 7 per cent in sterling.

今年第一季度末，瑞士央行持有的外汇储备中，欧元资产的比重达到48%，美元为26%，日元为8%，而英镑为7%。

China has been slowly opening up its domestic capital markets to foreign investment. Foreign institutions held Rmb437bn in Chinese domestic bonds at the end of June, according to China’s main bond clearing house.

中国已在慢慢对外资放开国内资本市场。根据中国主要债券结算机构的数据，截至6月底，境外机构持有4370亿元人民币的中国国内债券。