China inks currency swap agreements with over 40 foreign counterparts



The People’s Bank of China (PBOC) has established bilateral currency swap agreements with upwards of 40 foreign central banks or monetary authorities, a recent PBOC report unveils. Currently, 31 of these agreements are active, cumulatively amounting to approximately 4.16 trillion yuan (about 586 billion U.S. dollars).

These financial arrangements allow participating central banks to exchange their currencies, facilitating bilateral trade and investment by minimizing exchange costs and mitigating exchange rate volatility. The report highlights the significant contribution of these agreements towards enhancing market confidence and bolstering financial stability both regionally and globally.