The two central banks fortified their bilateral safety net.
The ECB and PBOC decided to extend their bilateral euro-renminbi currency swap arrangement for another three years until 8 October 2025. The agreement remains unchanged with its maximum size at 350 billion yuan (US$49.15 billion) and €45 billion (US$43.83 billion). The arrangement also serves as a backstop facility to address potential sudden and temporary Chinese Yuan liquidity shortages for euro area banks as a result of disruptions in the renminbi market. The arrangement with the PBOC is consistent with the large volumes of bilateral trade and investment between the euro area and China as well as contributes to global financial stability.
