ECB and People’s Bank of China renew and expand cooperation

Brussels – An even more regular exchange of information, continuous dialogue on a more open channel of communication, and enhanced technical cooperation: the European Central Bank and the Central Bank of China (People’s Bank of China) signed a memorandum of understanding reviving bilateral ties and cooperation, updating the 2008 protocol that provides, among other things, for staff exchanges.

The document was signed during ECB President Christine Lagarde’s visit to Beijing. As part of the visit, her meeting with the governor of the People’s Bank of China, Pan Gongsheng, resulted in the signing of a new memorandum of cooperation in the field of central banking.

The Sino-European cooperation between central banks is part of a continuing process of closer ties that began almost twenty years ago and already led to the 2013 signing of a bilateral local currency swap agreement to support bilateral economic and trade relations. The 2013 decision aimed to create a safety mechanism to provide liquidity support to promote the further development of the Chinese and European financial markets.

Today (June 11), the signing of the new memorandum of understanding comes in the context of new and more unpredictable Euro-Atlantic relations. The president of the ECB, Christine Lagarde, makes no reference whatsoever to the Trump administration, its trade war, and its untrustworthiness, merely emphasizing that the new protocol is a “sign of our ongoing dialogue with the People’s Bank of China.” Words that certify a strengthening of relations with Beijing, which is certainly not an easy partner to deal with at a time when stability and certainty are needed.