BoM Plans To Double Currency Swap With PBOC To CNY20bn

News: The Bank of Mongolia (BoM) is planning to extend a bilateral local currency-swap line with the People's Bank of China (PBOC) for a period of three-years as well as double its size to CNY20bn (US$3.24bn). The move will boost confidence in the foreign-exchange market and strengthen the off-balance reserves buffer, according to BoM Chief Economist Bold Sandagdorj (Bloomberg). The three-year period will commence in May 2014, Sandagdorj said. The currency-swap line with China will give Mongolia a sufficient reserve buffer for maintaining overall macro balance, Sandagdorj added. The authority expects Mongolia's trade- and current-account deficits to decline substantially in 2014, thereby reducing the demand for foreign exchange, according to Sandagdorj.

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Geography: Mongolia, China

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