The deal allows lending in the local Renmninbi currency to Albanian exporters and importers from China.
TIRANA, April 2 – The bilateral currency swap deal the Albanian and Chinese central banks have signed will positively contribute to trade exchanges between the two countries and the financial market in Albania, Bank of Albania governor Ardian Fullani said on Wednesday in a meeting with bank representatives. The deal allows lending in the local Renmninbi currency to Albanian exporters and importers from China. Governor Fullani said the agreement would also allow the Albanian government to issue bonds in Chinese Yuan Renmninbi.
In September 2013, the Albanian and Chinese central banks signed currency swap deal worth around 250 million euros.
China’s central bank said the agreement aims to strengthen bilateral financial cooperation, promote trade and investment and jointly maintain regional financial stability.
The swap transaction provides a channel by which the central banks can have access to the local currency of the other party. It aims to promote bilateral trade and direct investments for economic development of the two countries in local currency terms, and to support domestic financial stability of both countries, if market conditions require such liquidity. The agreement is valid for an initial duration of three years and may be extended by mutual consent, says BoA.
According to Governor Fullani, this agreement will be instrumental towards the strengthening of bilateral financial cooperation and facilitating bilateral economic ties and trade between Albania and China, as well as maintaining financial stability in the country.
China is one of Albania’s top trade partners with trade exchanges on a constant upward trend.
Albania’s trade exchanges with China registered a considerable increase in 2013, ranking China the third most important trade partner after Italy and Greece. INSTAT data show Albania’s exports double to 11.5 billion lek (Euro 80 million) in 2013 while imports slightly grew to 35 billion lek (Euro 244 million).
