The European Central Bank (ECB) and the People’s Bank of China (PBOC) have decided to extend their bilateral euro-renminbi currency swap arrangement for another three years until October 8, 2028. The conditions of the arrangement remain unchanged.

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.

ECB and the PBOC have extended their bilateral euro–renminbi currency swap arrangement for another three years, until October 8, 2028.
First established in 2013 with a maximum size of CNY 350 billion (~$49 billion) and €45 billion (~$52.65 billion), the unchanged facility acts as a backstop for euro area banks, ensuring liquidity and supporting financial stability amid trade and investment ties.

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.

Fibre2Fashion News Desk (SG)