BREAKING NEWS
This content is not available in your region

ECB, PBOC extend currency swap agreement by three years

Access to the comments Comments
ECB, PBOC extend currency swap agreement by three years
FILE PHOTO: The headquarters of the European Central Bank (ECB) is illuminated with a giant euro sign in Frankfurt, Germany, March 12, 2016. REUTERS/Kai Pfaffenbach/File Photo   -   Copyright  Kai Pfaffenbach(Reuters)
Text size Aa Aa

FRANKFURT (Reuters) – The European Central Bank has extended a bilateral, 45 billion euro ($50 billion)currency swap arrangement with the People’s Bank of China for another three years, the ECB said in a statement on Friday.

“From a Eurosystem perspective, the arrangement serves as a backstop facility to address potential sudden and temporary liquidity shortages in euro area banks due to disruptions in the renminbi market,” the ECB said.

The swap arrangement, which has a maximum size of 350 billion renminbi and 45 billion euros, was first established in 2013 and was later extended in 2016.

($1 = 0.8994 euros)

(Reporting by Balazs Koranyi; Editing by Jon Boyle)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on euronews.com for a limited time.