South Africa’s central bank agrees $4.8bn currency swap deal with China

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African Reserve Bank (SARB) today said it has signed a three-year bilateral swap agreement with the People’s Bank of China (PBoC) for the exchange of $4.75 billion in local currencies.

“The purpose of the agreement is to support trade and investment between and China, and also to act as a mitigating resource for short term balance of payment pressures,” a by SARB said.

The two central banks, according to SARB, entered into the due to the rapidly growing bilateral trade and investment, not only between South Africa and China, but also China and the rest of the African continent.

SARB that the agreement  strengthens its with PBoC which dates back to 2013 when a was agreed to allow ’s central bank to invest in China’s onshore bond market.(VENTURES AFRICA)
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