China, UAE renew 35 billion yuan currency swap deal

100 Yuan notes are seen in this illustration picture in Beijing November 5, 2013. REUTERS/Jason Lee

BEIJING (Reuters) - China and the United Arab Emirates have renewed their local currency swap agreement for a further three years, with a swap line of 35 billion yuan ($5.42 billion), the People’s Bank of China (PBOC) said on Monday.

The United Arab Emirates also will be included in the RMB Qualified Foreign Institutional Investor (RQFII) scheme, with a quota of 50 billion yuan, aimed at promoting bilateral trade and investment.

The RQFII program is a yuan-denominated version of the Qualified Foreign Institutional Investor (QFII) scheme, which was created by China to allow foreigners to invest in Chinese capital markets.

Reporting by Sue-Lin Wong; Editing by Kim Coghill