ZURICH, Jan 21 (Reuters) - Switzerland’s central bank said on Wednesday that it agreed with the People’s Bank of China (PBOC) to establish clearing arrangements in Switzerland for renminbi trading and extend a pilot scheme for Swiss investors.
“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.
Alongside the pact, the PBOC will extend a pilot scheme for foreign investors to Switzerland with a quota of up to 50 billion yuan ($8.05 billion).
The Swiss central bank said a bilateral currency swap agreement worth 150 billion yuan signed with China last year was a key precursor to developing a renminbi market in Switzerland. ($1 = 6.2112 Chinese yuan renminbi) (Reporting By Katharina Bart; Editing by Alison Williams)