Currency swap agreement between China and Malaysia
Release time: 2018-09-04 12:25 Browse volume:511
The People's Bank of China, the country's central bank, said Monday that it had extended a currency swap1 agreement with the central bank of 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 bilateral2 trade and investment.
Valid3 for three years, the agreement can be extended upon mutual4 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 liquidity5 support to financial markets.