(MENAFN- Qatar News Agency) Japan and China intend to expand a currency swap scheme to help each other avoid shortfalls in foreign currency reserves.
Japanese and Chinese leaders agreed last December to allow private firms in the 2 countries to settle their transactions by the yen or yuan.
Last month, direct inter-banking exchange of the yen and yuan began at commercial banks in both countries.
Stable supply of the 2 currencies is indispensable, as yen or yuan settlements are expected to increase along with the expansion in trade between the 2 nations.
The Japanese and Chinese governments plan to discuss how to expand the current currency swap scheme, which is now valued at about 3 billion dollars, Japan's (NHK World) website reported.
The scheme is designed to help the central banks of the 2 countries secure the yen and the yuan if they run short of reserves.
The framework was created a decade ago in the wake of the currency crisis in Asia.
Japan hopes the expansion of the swap scheme will bring further stability to markets and facilitate trade between the 2 countries. It also wants China to do more for currency reform by increasing the yuan's circulation.
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