`Renminbi Liquidity Arrangement’ by China Is Step Toward Currency Stability

The People’s Bank of China has established a currency stabilization fund in renminbi at the Bank for International Settlements (BIS) with six other central banks: those of Indonesia, Thailand, Malaysia, Hong Kong, Singapore, and Chile. The Renminbi Liquidity Arrangement (RLA) started with the equivalent of $20 billion in equal contributions by these banks in either renminbi or dollars. The RLA was actually announced by the BIS on June 26.