Tabakovic signs MoU with People's Bank of China governor

BELGRADE - National Bank of Serbia (NBS) Governor Jorgovanka Tabakovic and People’s Bank of China Governor Pan Gongsheng signed a memorandum of understanding on establishment of a clearing arrangement and the designation of a clearing bank in Serbia for the Chinese yuan.

The MoU regulates intensive cooperation between the two central banks in regard to execution of transactions in the Chinese yuan by banks in Serbia, the NBS said in a statement.

"The establishment of a clearing arrangement in Serbia will promote cross-border transactions in the Chinese yuan by companies and financial institutions in China and Serbia and further facilitate trade and investment" it said.

Tabakovic pointed out that the foundations of economic cooperation between China and Serbia had been laid a decade ago.

"Today’s event is yet another step in the improvement of Chinese-Serbian cooperation in the field of financial services, helping us create conditions for advancing settlements and promoting transactions in the Chinese yuan," she added.

“As an institution that closely monitors the needs of the domestic economy and the market and creates enabling business conditions, back in January 2015 the NBS included the Chinese yuan in the list of currencies that can be traded in the local FX market. The robust growth in trade between our countries, as well as high investment inflows, have further increased the needs of participants for the Chinese yuan in the Serbian market of financial services”, Tabakovic said.

"The signing of the MoU reaffirms a commitment to the continuation of bilateral cooperation between the two central banks and further development of the strategic partnership between China and Serbia," the NBS said.