FRANKFURT (Reuters) -The European Central Bank and the People's Bank of China have extended for a further three years a currency swap deal aimed at addressing any sudden liquidity shortage that would
ECB and PBOC Renew 45 Billion Euro Liquidity Line for Three Years
Overview of the Liquidity Line Extension
FRANKFURT (Reuters) -The European Central Bank and the People's Bank of China have extended for a further three years a currency swap deal aimed at addressing any sudden liquidity shortage that would hamper commercial lenders, the ECB said on Monday.
Details of the Currency Swap Agreement
The arrangement, originally announced in 2013, will run through October 2028, with its maximum size unchanged at 350 billion renminbi and 45 billion euros.
Implications for Euro Area Banks
"The arrangement serves as a backstop facility to address potential sudden and temporary CNY liquidity shortages for euro area banks as a result of disruptions in the renminbi market," the ECB said in a statement.
(Reporting by Balazs Koranyi; Editing by Kirsten Donovan)
