Markets > Currencies

Chinese mainland, Macao sign currency swap deal

BEIJING
2019-12-06 10:31

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BEIJING, Dec. 5 (Xinhua) -- China's central bank said Thursday it has inked a currency swap deal with the monetary authority of the Macao Special Administrative Region.

The deal will allow the two sides to swap a total of 30 billion yuan (about 4.3 billion U.S. dollars) for 35 billion patacas and vice versa, said the People's Bank of China (PBOC).

The move is aimed at maintaining financial stability and supporting the economic and financial development of both sides, according to the PBOC.

The agreement will be valid for three years and can be extended by mutual consent.

A currency swap deal 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.
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