China, Qatar ink currency, investment deals
November 4, 2014, 11:44 am

Chinese President Xi Jinping (L) holds a welcoming ceremony for Sheikh Tamim Bin Hamad al-Thani, Emir of Qatar, before their talks in Beijing, capital of China, Nov. 3, 2014 [Xinhua]

The announcement was made during the Emir of Qatar, Sheikh Tamim Bin Hamad al-Thani’s state visit to China. Al-Thani concludes his 3-day trip to Beijing on Tuesday.

“According to a memorandum of understanding (MoU) on yuan clearing in Doha, the People’s Bank of China (PBOC) decided to authorize the Doha branch of ICBC to clear yuan transactions in Doha,” the PBOC said in a statement on its website.

The PBOC and Qatar Central Bank signed the MoU on yuan clearing in Doha on Monday after the two sides had signed a 35 billion yuan ($5.7 billion) currency swap deal.

China agreed to give Qatar the right to buy up to 30 billion yuan worth of securities initially in mainland China under a special investment scheme, the Renminbi Qualified Foreign Institutional Investors Program.

Also on Tuesday, China’s state-run CITIC group launched an equal partnership $10 billion Asia fund for investment in the region with Qatar Investment Authority (QIA).

Meanwhile, Chinese President Xi Jinping on Monday welcomed Qatar’s joining in the building of the reincarnated Silk Road economic belt and the 21st-century maritime Silk Road.

“China is willing to establish a long-term stable energy partnership with Qatar; and boost cooperation and investment in infrastructure, telecommunication and finance as well as joint investment in third countries,” Xi said.

He also urged for enhanced “military communication and cooperation in security, law enforcement and counterterrorism measures”, said Chinese state-run news agency Xinhua.

The Chinese President also asked Qatar to speed up negotiations on a Free Trade Agreement between China and the Gulf Cooperation Council (GCC).

“We decided to upgrade our bilateral ties to a strategic relationship during your visit, which is an important milestone,” Xi told the Emir on Monday.

TBP and Agencies