The European Central Bank (ECB) and the People's Bank of China (PBC) established a bilateral currency swap agreement "in the context of rapidly growing bilateral trade and investment between the euro area and China, as well as the need to ensure the stability of financial markets".
The swap agreement will be valid for three years and have a maximum size of 350bn yuan when yuan are provided to the ECB and €45bn when euros are provided to the PBC.
"From the perspective of the Eurosystem, the swap arrangement is intended to serve as a backstop liquidity facility and to reassure euro area banks of the continuous provision of Chinese yuan," the ECB said in a statement.
Source: LiveCharts
The swap agreement will be valid for three years and have a maximum size of 350bn yuan when yuan are provided to the ECB and €45bn when euros are provided to the PBC.
"From the perspective of the Eurosystem, the swap arrangement is intended to serve as a backstop liquidity facility and to reassure euro area banks of the continuous provision of Chinese yuan," the ECB said in a statement.
Source: LiveCharts
