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a report recently released by the people's bank of china shows that as of the end of august 2024, the people's bank of china has signed bilateral local currency swap agreements with central banks or monetary authorities in 42 countries and regions, of which 29 are valid agreements and the swap scale exceeds 4.1 trillion yuan.

bilateral currency swaps between central banks are a financing arrangement in which one country's central bank can exchange its own currency for another country's currency. swap funds can be used to support bilateral trade and investment activities, helping to save exchange costs and reduce exchange rate risks.

the "2024 rmb internationalization report" released by the people's bank of china shows that the people's bank of china continues to deepen currency cooperation with overseas central banks, and currency swap arrangements have become an important part of the global financial safety net.

the size of the swap agreement is the upper limit of the swap funds that can be used, and is not equivalent to the actual use scale of the funds. according to the report, as of the end of august 2024, overseas monetary authorities had actually used a balance of rmb 91.6 billion, and the people's bank of china had actually used a balance of foreign currency swap funds equivalent to rmb 680 million.

in addition, the report stated that as of the end of august 2024, china had signed bilateral local currency swap agreements with 31 "belt and road" co-building countries, and established rmb clearing arrangements in 19 "belt and road" co-building countries.

source: xinhua news agency

author: wang xi

process editor: u070