China, Japan renew Chiang Mai swaps plan

Sept. 22, 2007 at 11:50 AM

BEIJING, Sept. 22 (UPI) -- China and Japan have renewed a currency trading agreement designed to prevent another financial crisis in Asia.

The swap agreement makes hard currency swaps available to better contend with major trading moves by currency speculators, China’s Xinhua news agency said Saturday.

The agreement signed this week is part of the 2002 Chiang Mai Initiative, a landmark agreement that Xinhua said firmed up the regional financial markets and spurred economic growth.

The Chiang Mai Initiative establish a series of bilateral agreements on large-scale temporary currency swaps among major banks designed to stabilize currencies in danger of being undermined on the world trading market.

Related UPI Stories
Latest Headlines
Trending Stories
Ted Cruz campaign pulls ad featuring softcore porn actress
Report: Clinton Foundation subpoenaed by State Dept. watchdog over charity projects
Ruby Rose, Gigi Hadid react to Kanye West's lyric about Taylor Swift
Kristen Wiig impersonates Peyton Manning on 'The Tonight Show'
NYC police officer found guilty of manslaughter in Brooklyn stairway shooting