Closer Look: Britain, China Make Slow Progress on Currency Swap Deal

(London) -- The Bank of England's governor said on February 22 during a visit to China that the bank and its Chinese counterpart were close to signing a three-year currency swap arrangement.

The statement by Mervyn King raised hopes that the two countries were nearing a long-anticipated deal.

Such an agreement would allow the central banks to swap currencies for financing bilateral trade and direct investment.