According to the People’s Bank of China (PBOC), the central banks of China and Saudi Arabia have signed a 3-year bilateral local currency swap agreement with a size of 50 billion Chinese yuan / 26 billion Saudi riyals on November 20. The agreement can be extended beyond 3 years by mutual consent. The goals of the agreement are to strengthen financial cooperation between China and Saudi Arabia, promote use of local currencies for trade and investment between the countries, and facilitate bilateral trade and investment flows.
The swap agreement was approved by China’s State Council and establishes a framework for the two central banks to provide liquidity in each other’s currency if needed to support trade and financial stability.
Source: Sputnik News, November 20, 2023