China, Malaysia sign MOU on extending bilateral currency swap deal

Beijing, Aug 20 : The China’s central bank and the central bank of Malaysia on Monday has extended a currency swap agreement which was first established in 2009 and renewed in 2012 and then in 2015.
The People’s Bank of China and Bank Negara Malaysia (BNM) has entered into an agreement to renew the bilateral currency swap arrangement with a size of RMB180 billion/RM110 billion for a further tenure of three years.
The swap is for 180 billion yuan (26.2 billion U.S. dollars) or 110 billion Malaysian ringgit, according to the bank.

The renewal of the agreement demonstrated the strengthening of bilateral trade and direct investment between Malaysia and Chinaas both the countries can exchange payments in one currency for equivalent amounts in the other to facilitate bilateral trade settlements.

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