European Central Bank and People’s Bank of China Extend Crucial Currency Swap Arrangement
Frankfurt/Beijing – September 8, 2025 – The European Central Bank (ECB) and the People’s Bank of China (PBoC) today announced the extension of their bilateral currency swap arrangement between the euro and the renminbi (RMB). This important agreement, first established in 2013, will now continue for a further three years, reaffirming the commitment of both central banks to fostering financial stability and facilitating trade and investment between the Euro area and China.
The renewed swap line, which allows for the exchange of currencies up to a pre-determined limit, serves as a vital tool in managing potential liquidity shortages in either currency within their respective jurisdictions. In times of market stress or unexpected financial disruptions, the arrangement provides a reliable mechanism for the ECB to access RMB and for the PBoC to access euros, thereby helping to maintain orderly market functioning and bolster confidence.
This extension underscores the ongoing importance of the euro and the renminbi as key international currencies. The swap agreement plays a significant role in supporting cross-border economic activities, including trade and investment flows between the Euro area and China, two of the world’s largest economic blocs. By ensuring the availability of liquidity in both currencies, the arrangement helps to mitigate settlement risks and can contribute to the smooth functioning of financial markets.
The ECB and the PBoC have maintained a constructive and collaborative relationship, and the renewal of this swap arrangement is a testament to that strong partnership. Both institutions recognize the mutual benefits of such agreements in promoting global financial stability and supporting economic growth. The continued availability of this facility signals a commitment to maintaining robust financial ties and provides a degree of reassurance to businesses and financial institutions operating across Europe and China.
The specific terms of the extended agreement remain consistent with the previous arrangement, allowing for flexibility in its utilization should the need arise. The ECB and the PBoC will continue to monitor global economic and financial developments closely and stand ready to deploy the swap line as appropriate to safeguard financial stability. This proactive step by both central banks demonstrates their dedication to maintaining a stable and predictable financial environment for the benefit of all stakeholders.
ECB and People’s Bank of China extend bilateral euro-renminbi currency swap arrangement
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