China and Chile renew RMB 50 billion currency swap for five years
The People's Bank of China (PBoC) and the Central Bank of Chile (BCCh) renewed their bilateral currency swap for five years. The agreement remains at RMB 50 billion/CLP 6 trillion and aims to support trade, investment and financial stability.
Five years at unchanged size
With State Council approval, the PBoC and BCCh renewed their bilateral currency swap agreement, retaining its size at RMB 50 billion/CLP 6 trillion.
The renewed agreement is valid for five years.
The announcement therefore sets out a renewal at the existing amount, rather than an increase in the size of the arrangement.
It states the agreement's size in both renminbi and Chilean pesos and identifies the two central banks as the parties.
The notice does not specify the date on which the renewed agreement takes effect.
It also does not provide pricing, drawing conditions or a schedule for transactions under the arrangement.
Trade and stability objectives
The PBoC said the renewal would deepen monetary and financial cooperation between China and Chile, facilitate bilateral trade and investment, and uphold financial market stability.
These are the stated objectives of maintaining the bilateral arrangement for another five years.
The announcement does not quantify the anticipated effects on trade or investment, report drawings under the swap or identify a particular episode of market stress as the reason for renewal.
Renewal rather than expansion
The agreement preserves the existing swap size for a five-year term.
The PBoC links that continuity to cooperation, trade, investment and financial market stability.
The notice reports neither an increase in the arrangement nor any use of funds under it.