BIS establishes Renminbi Liquidity Arrangement with People's Bank of China

The Bank for International Settlements (BIS) has established a liquidity arrangement with the People's Bank of China to provide liquidity to central banks in the Asia-Pacific region. This new Renminbi Liquidity Arrangement (RMBLA) will provide liquidity support through a reserve pooling scheme, whereby participating central banks will contribute a minimum of RMB 15 billion, or its USD equivalent, to a pool held with the BIS. Participating central banks can draw funds from this pool during periods of market volatility and also gain access to additional funding through a collateralised liquidity window managed by the BIS up to an amount equivalent…