China’s central bank said a meeting in Shanghai produced an agreement with the U.S. Treasury to appoint contact people to deal with any future “financial stress events,” a rare example of the world’s two biggest economies seeking common ground.
The two sides also “exchanged lists of financial stability contacts” during the fifth meeting of the so-called Financial Working Group that was set up following Treasury Secretary Janet Yellen’s visit to China last year.
“The People’s Bank of China and the U.S. Treasury Department signed an exchange of notes on strengthening China-U.S. financial stability cooperation,” according to the readout from the PBOC about the meetings on Aug. 15-16.
The Treasury said in its own readout Monday that the two sides exchanged letters “in support of coordination during times of financial stress to strengthen appropriate information sharing and reduce overall uncertainty between Treasury and the PBOC regarding crisis management and recovery and resolution frameworks.” The exchange of key points of contact is to make it easier to quickly coordinate in instances of financial stress or operational resilience issues, the readout said.
