China central bank upgrades currency swap with HKMA, expands size to 800 billion yuan

BEIJING (Reuters) – China’s central bank said on Monday that it has upgraded a currency swap facility with Hong Kong to a standing swap agreement and expanded the size to 800 billion yuan ($119.40 billion) from 500 billion yuan.

The agreement was signed by the People’s Bank of China (PBOC) and the Hong Kong Monetary Authority. It is the PBOC’s first standing swap agreement, according to a statement posted on its website.

The PBOC said the upgraded agreement could provide more stable and long-term liquidity support to the Hong Kong market, help stabilize market expectations, and promote the development of Hong Kong’s offshore yuan market.

($1 = 6.7000 Chinese yuan renminbi)