PBoC and ECB establish currency-swap line

The facility will make available a maximum of Rmb350 billion to the ECB and up to €45 billion to the People’s Bank of China, and is an important step forward in the internationalisation of the renminbi.
The line will provide Beijing with a significant avenue to promote the renminbi as a truly international currency for use in the global trade and financial markets.
The line will provide Beijing with a significant avenue to promote the renminbi as a truly international currency for use in the global trade and financial markets.

The People’s Bank of China and European Central Bank announced a landmark currency swap deal on Thursday as the renminbi passed another milestone on the road to its full internationalisation.

The facility, valid for an initial three years, will make up to Rmb350 billion $57 billion available to the ECB and up to 45 billion to the PBoC. That's smaller than the Rmb800 billion arrangement some analysts forecast earlier this year but still means the new swap line is China's third-largest after those with Hong Kong and South Korea.

“Given the significance of the eurozone, the agreement is another major step forward in the Rmb’s internationalisation...

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