Bank of Japan (BOJ) Governor Haruhiko Kuroda met with visiting People’s Bank of China (central bank) Governor Yi Gang on May 10. The two officials reached basic agreement on concluding a currency swap accord, which will make possible the stable supply of yen to Chinese companies that need yen and yuan to Japanese companies that need yuan in an economic crisis.

The Japan-China summit held on May 9 had agreed to complete the procedures for concluding this agreement at an early date.

The two countries launched currency swap arrangements in 2002, but the agreement expired in 2013 when bilateral relations deteriorated over the Senkaku Islands issue. Working level officials had drawn up draft proposals for the two banks to sign a new agreement by 2015 but the Chinese leadership had not given its approval.

The Japan-China summit also agreed on China granting Japan an investment quota (under the Renminbi Qualified Foreign Institutional Investor [RQFII] program) and setting up a yuan clearing bank.