- ECB and People’s Bank of China extend euro-renminbi currency swap arrangement for another three years
- Swap arrangement has maximum size of CNY 350 billion and €45 billion
- Arrangement serves as backstop liquidity facility to address potential shortages of Chinese renminbi at euro area banks
CHINA / GERMANY – The European Central Bank (ECB) and the People’s Bank of China (PBC) have decided to extend their bilateral euro-renminbi currency swap arrangement for another three years until 8 October 2028. The conditions of the arrangement remain unchanged.
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 €45 billion. This was subsequently extended in 2016, 2019 and 2022, each time for a further three-year period.
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. Liquidity-providing arrangements contribute to global financial stability. The arrangement with the PBC is consistent with the large volumes of bilateral trade and investment between the euro area and China.