China, Malaysia extend currency swap deal

The People’s Bank of China, the country’s central bank, said Monday that it had extended a currency swap agreement with the central bank of Malaysia.

The People’s Bank of China, the country’s central bank, said Monday that it had extended a currency swap agreement with the central bank of Malaysia, Bank Negara Malaysia.

The swap is for 180 billion yuan (26.2 billion U.S. dollars) or 110 billion Malaysian ringgit, according to the bank.

The two parties believe the extension will facilitate bilateral trade and investment.

The agreement is valid for three years,  and can be extended upon mutual consent.

A currency swap allows two institutions to exchange payments in one currency for equivalent amounts in the other to facilitate bilateral trade settlements and provide liquidity support to financial markets.

The agreement was first established in 2009 and renewed in 2012 and 2015. The renewal of the agreement demonstrated continuous commitment in promoting the use of local currencies for bilateral trade and direct investment between Malaysia and China.

Source Reference: http://www.freemalaysiatoday.com/category/business/2018/08/20/bank-negara-and-peoples-bank-of-china-renew-bilateral-currency-swap/ ; http://en.silkroad.news.cn/2018/0821/107227.shtml  ;

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20
Aug
2018