ECB and PBoC extend currency swap deal

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 ensuring euro area banks do not run our of renminbi, the ECB said on Monday.

The arrangement will run through 8 October 2025, with its maximum size unchanged at 350 billion renminbi and 45 billion euros ($43.65 billion).

“From a Eurosystem perspective, 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.

($1 = 1.0309 euros)

(Reporting By Francesco Canepa; Editing by Balazs Koranyi)