PBOC upgrades currency swap with HKMA, expands size to CNY800 billion

The People’s Bank of China (PBOC) announced on Monday, it has upgraded a currency swap facility with Hong Kong to a standing swap agreement and expanded the size to 800 billion yuan ($119.40 billion) from 500 billion yuan, per Reuters.

Key takeaways

The agreement was signed by the People's Bank of China (PBOC) and the Hong Kong Monetary Authority (HKMA).

The upgraded agreement could provide more stable and long-term liquidity support to the Hong Kong market.

Will help stabilize market expectations and promote the development of Hong Kong's offshore yuan market.