ECB, PBOC extend euro–renminbi swap deal until 2028

From a Eurosystem perspective, the arrangement serves as a backstop facility to address potential sudden and temporary CNY liquidity shortages for euro area banks as a result of disruptions in the renminbi market, ECB said in a press release.

Liquidity-providing arrangements contribute to global financial stability. The arrangement with the PBOC is consistent with the large volumes of bilateral trade and investment between the euro area and China.

The ECB and the PBOC established the first three-year bilateral currency swap arrangement on October 8, 2013, with a maximum size of CNY 350 billion (~$49 billion) and €45 billion (~$52.65 billion). This was subsequently extended in 2016, 2019 and 2022, each time for a further three-year period.

ALCHEMPro News Desk (SG)