China allows World Bank investment in its interbank bond market

China’s central bank, the People’s Bank of China (PBC) and the World Bank Group, have signed an Agency Agreement that will allow the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) to invest in China’s Interbank bond market.

The agreement was signed by PBC’s Governor Mr. ZHOU Xiaochuan and the President of the World Bank Mr. Robert B. Zoellick in Washington DC April 22, 2012.

This agreement enables the World Bank to participate in the development of China’s fixed income market by investing in Chinese fixed income products, said the Washington-based lender in a statement.

It also allows the World Bank to potentially develop and offer Renminbi-denominated products to its borrowers, it added.

By Ekow Quandzie