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 2025. The conditions of the arrangement remain essentially 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 and 2019, 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.