EU, China extend euro-renminbi swap agreement for another three years

Brussels – The European Central Bank and the People’s Bank of China (PBC) extended the bilateral euro-renminbi currency swap arrangement for another three years, on unchanged terms. The ECB and PBC decided to renew their bilateral currency swap agreement until 8 October 2028, to ensure liquidity in the event of potential shortages of Chinese renminbi at euro area banks. 

The currency swap agreement with China’s central bank “is consistent with the large volumes of bilateral trade and investment between the euro area and China,” the Eurowoter notes. The ECB and the PBC established the first three-year bilateral currency swap arrangement on 8 October 2013, with a maximum size of CNY 350 billion and EUR 45 billion. It was subsequently extended in 2016, 2019, and 2022, each time for a further three-year period.