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The swap agreement between the ECB and the PBoC has been extended

The swap agreement between the European Central Bank (ECB) and the People’s Bank of China (PBOC) has been extended for another 3 years.

The 45 billion dollar (350 billion yuan) currency swap agreement between the European Central Bank (ECB) and the People’s Bank of China (PBoC) has been extended for another 3 years.

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In the statement made by the ECB, it was stated that from the point of view of the Eurosystem, this extension agreement will allow to eliminate the sudden and temporary liquidity shortage of banks in the Eurozone in case of disruptions in the renminbi market and contribute to global financial stability.

It was emphasized that the extension will help deepen the bilateral trade and investment cooperation between the Eurozone and China.

In the statement, it was stated that the said agreement was extended to 8 October 2025, reminding that the first foreign exchange swap agreement between the ECB and PBoC was signed in 2013 with a maximum of 45 billion euros, and it was extended for 3 more years in 2016 and 2019.

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