China and Albania in currency swap deal

Deal is worth US330 million.

The People’s Bank of China, the central bank, signed the currency swap agreement with Albania yesterday. It is another step toward the internationalization of the renminbi.

The swap will boost bilateral financial cooperation, promote trade and investment, and preserve financial stability, said PBOC. The agreement is valid for three years and can be extended with both sides' agreement.

The moves bring China closer to a fully convertible currency and open capital account. The government plans a basic liberalization of its capital account by 2015, and to fully open it by 2020.

Also this week, PBOC signed a RMB10 billion swap agreement with Hungary. China also has swap agreements with the U.K., Australia and South Korea.