China has granted a 50 billion yuan ($7.2 billion) investment quota to Ireland, which has been extended under China's Renminbi Qualified Foreign Institutional Investor (RQFII) scheme. The announcement was made by the People's Bank of China on Wednesday.

The quota will allow qualified Irish investors to invest in China's equity and domestic bond market, as well as use domestic currency Renminbi for this purpose. Irish financial service providers will also be able to offer such services to European markets.

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The RQFII program was launched in 2011, and Ireland is the 17th foreign jurisdiction to be granted such quota under the program. Central Bank Governor Philip Lane said, "The engagement between the People's Bank of China and the Central Bank as part of this initiative also represents an important step in further strengthening bilateral financial cooperation between the two jurisdictions." 

The move has been welcomed by the Finance Minister of Ireland Michael Noonan as well. He said that the quota will improve Ireland's financial services ecosystem and will make the country an attractive destination of foreign direct investment. The Finance Minister also said that this deal will lead to better global economic integration.

Chinese authorities are trying to boost international use of yuan as the country's economy is being reformed. The latest announcement comes after the news of the Irish Central Bank being allowed to accept applications from Irish domiciled UCITS and AIFs for making investments through the known as Shenzhen Connect program.

The program is likely to help China in boosting its economy while increasing cooperation with foreign economies. South Korea, Britain, and Germany are also members of this program.

Tagschina, Ireland, Renminbi Qualified Foreign Institutional Investor