Japan and China will likely agree to resurrect a currency swap agreement during talks between Prime Minister Shinzo Abe and Chinese President Xi Jinping set for Friday in Beijing, according to sources.
The swap ceiling is expected to be raised to about 3 trillion yen. Both sides view the deal as a means of signaling improvement in bilateral ties.
Tokyo and Beijing concluded a swap agreement in 2002 capped at about 300 billion yen, but the deal expired in 2013 amid growing tensions over the Senkaku Islands.
The new agreement will likely set the swap ceiling 10 times higher.
Abe is scheduled to make an official visit to Beijing from Thursday to Saturday, during which he will meet Xi and other Chinese officials.
The envisioned swap agreement will enable Japanese companies in China to obtain yuan from the People's Bank of China via the Bank of Japan if, for example, the companies become unable to conclude transactions using yuan due to system failure or for other reasons. The agreement is aimed at establishing a safety net for companies ahead of an expected increase in investment in China.
Read more from The Japan News at https://japannews.yomiuri.co.jp/
