BEIJING, Dec. 5 (Xinhua) -- The People's Bank of China (PBOC) and the Monetary Authority of Macao have renewed their bilateral currency-swap agreement and upgraded it to a standing swap arrangement, which will remain valid over the long term, the PBOC said on Friday.
The scale of the swap facility has been increased from 30 billion yuan (about 4.24 billion U.S. dollars), or 34 billion patacas, to 50 billion yuan, or 57 billion patacas.
The move aims to maintain financial stability in both regions, support bilateral trade and economic exchange in an improved manner, and promote the steady development of Macao's offshore renminbi market, the PBOC noted.
A currency-swap deal allows two institutions to exchange payments in one currency for equivalent amounts in the other to facilitate bilateral trade settlements and provide liquidity support for financial markets. ■
