China and Australia Extend Currency Swap Agreement for Five Years
Summary
China and Australia have renewed their bilateral local currency swap agreement for another five years, raising the limit to 220 billion yuan. The move is aimed at strengthening monetary cooperation, supporting trade and investment, and helping stabilize financial markets.
Key Points
- The People’s Bank of China and the Reserve Bank of Australia renewed their local currency exchange agreement for five more years.
- The maximum limit of the swap arrangement was increased from 200 billion yuan to 220 billion yuan.
- The central banks said the deal will support bilateral trade, investment, and financial market stability.
- China and Australia’s trade ties have expanded, with goods trade rising sharply in the first six months of 2026.
