09.09.202506:36:50UTC+00China Renews Currency Swap Deals with ECB, SNB, and Hungary

The People’s Bank of China has extended its bilateral currency swap agreements with the European Central Bank (ECB), the Swiss National Bank (SNB), and the National Bank of Hungary, underscoring a strategic commitment to fostering increased financial connectivity. The renewed swap agreement with the ECB amounts to CNY 350 billion (equivalent to EUR 45 billion) and will remain effective for three years. Simultaneously, the arrangement with the SNB is valued at CNY 150 billion (approximately CHF 17 billion) and is set to last for five years. The agreement with the National Bank of Hungary covers a five-year term with a swap size of CNY 40 billion (or HUF 1.9 trillion). As per the People's Bank of China's statement, the primary objectives of these renewals are to “enhance monetary and financial collaboration, boost bilateral trade and investment,” and sustain stability within financial markets. This initiative highlights China’s persistent efforts to bolster cross-border liquidity ties and advance the international use of the yuan through strategic alignments with prominent European financial entities.