China, Japan Extend Bilateral Currency Swap Agreement

The People’s Bank of China (PBOC) and the Bank of Japan have agreed to renew their bilateral currency-swap deal with about 28 billion U.S. dollars. The agreement will be valid for a three-year period and can be extended by mutual consent, China’s Central Bank said on Friday.

The currency-swap extension will help stabilize the financial markets of the two countries and facilitate bilateral economic and financial exchanges, according to the PBOC. In October 2018, the PBOC inked a bilateral currency-swap agreement with its Japanese counterpart, allowing the two sides to swap a total of 200 billion yuan for 3.4 trillion yen, and vice versa.