The Hong Kong Monetary Authority (HKMA) and People’s Bank of China (PBOC) have expanded their three-year currency swap agreement to $63 billion, Bloomberg reports. The agreement seeks to boost Hong Kong’s development as an offshore yuan center.
The agreement provisions Hong Kong to access yuan from the Chinese central bank for three years and substitutes a $31.43 billion currency swap agreement signed in January 2009. It will help the offshore yuan market in Hong Kong maintain stability by providing the needed liquidity.
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