The People’s Bank of China and the Bank of Japan have reached an agreement to renew their bilateral currency swap arrangement, valued at 200 billion yuan (approximately $28.13 billion), which is equivalent to 3.4 trillion Japanese yen.
This renewed agreement will be in effect for three years and can be extended upon mutual consent, as announced by the Chinese central bank on Friday.
The PBOC indicated that this currency swap arrangement is anticipated to enhance the stability of financial markets in both nations and facilitate the growth of bilateral economic and financial activities.
The initial currency swap agreement was established in October 2018, allowing both parties to exchange up to 200 billion yuan for 3.4 trillion yen, and vice versa. It was subsequently renewed in October 2021 for an additional three-year term.
