Central Bank swap deal with People’s Bank of China
View(s):The Central Bank of Sri Lanka (CB) and the People’s Bank of China (PBOC) this week entered into a bilateral Currency Swap agreement which provides an opportunity to exchange the Sri Lankan Rupee (LKR) with the Chinese national currency (CNY) for trade related activities and other purposes agreed upon by both parties. The swap deal, the CB said in a media release, facilitates the exchange of a maximum of Rs.225 billion and CNY 10 billion for a tenor of three years.
This agreement is also expected to facilitate the rapidly growing bilateral trade and investments between the two countries, as well as contribute towards the further enhancement of the financial cooperation between the two Central Banks, the release said.
This agreement follows the investment agreement entered into on August 25 between CB Governor Ajith Nivard Cabraal and Governor Zhou Xiaochuan of the PBOC, which enabled Sri Lanka to invest in the growing Chinese Interbank Bond Market.