PBOC and ECB Extend Currency Swap Agreement
Yicai Global
/SOURCE : Yicai
PBOC and ECB Extend Currency Swap Agreement

(Yicai Global) Sept. 27 -- China's central bank has signed a supplementary agreement with the European Central Bank to extend bilateral currency swap agreement for a further three years to 2019. The size of the swap remains RMB350 billion and EUR450 billion.

In October 2013 the ECB and the PBoC established a bilateral currency swap arrangement with a maximum size of 350 billion in Chinese Renminbi and 45 billion in the euro.

As part of the ECB's policy to regularly test its operational capabilities, they conducted two liquidity tests of the Euro and Renminbi with China's central bank, in April and November of 2014.

These tests also involved a limited number of Chinese and European counterparts. The tests were successful and demonstrated both country's readiness to activate the swap if needed, as mutually agreed, ECB said last year.

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