Media Release Bilateral Local Currency Swap Agreement with the People's Bank of China

Today, the Reserve Bank of Australia signed a bilateral local currency swap agreement with the People's Bank of China (PBC). The agreement allows for the exchange of local currencies between the two central banks of up to A$30 billion or CNY 200 billion. It is for an initial period of three years and can be activated by either party.

The main purposes of the swap agreement are to support trade and investment between Australia and China, particularly in local-currency terms, and to strengthen bilateral financial cooperation. The agreement reflects the increasing opportunities available to settle trade between the two countries in Chinese renminbi (RMB) and to make RMB-denominated investments. It follows the decision by the Chinese authorities last November to allow convertibility between Australian dollars and Chinese yuan in the interbank market in China.

The signing of this agreement occurred in Beijing at a ceremony between the PBC Governor Zhou Xiaochuan and RBA Governor Glenn Stevens.