The Central Bank of Mongolia said it will expand a currency swap agreement to CNY 25million with the People's Bank of China, paving the way for more yuan-based trade settlements. The ongoing CNY15 million currency swap agreement between the  two central banks will terminate in 2017.  On this occasion, the Economic Standing Committee of the  Mongolian Cabinet has discussed the continuation of the currency swap agreement.

The IMF added the Chinese yuan to its basket of reserve currencies last month. China has stepped up efforts to promote the yuan's use in cross-border trade and finance to reduce its reliance on the U.S. dollar in the wake of the global financial crisis. The increased circulation of the yuan offshore is also key to China's efforts to internationalise its currency .In recent years, the People's Bank of China has established bilateral currency swap agreements with a number of central banks, including those of Hong Kong, South Korea, Malaysia, Indonesia, Belarus and Argentina.