China Extends Local Currency Swap Agreement
Albanian Daily News
Published April 14, 2018
China's central bank said on Friday it has extended for a further three years a bilateral local currency swap agreement with Albania's central bank worth 2 billion yuan (Dollar 318.5 million/258.1 million euro).
The swap deal will facilitate trade and investment, and promote the economic development of both countries, the People's Bank of China (PBC) said in a statement.
The governor of the Bank of Albania, Gent Sejko, and the governor of the People's Bank of China, Yi Gang signed the renewal of the agreement on April 3, the Bank of Albania said in a separate statement. The new agreement, like the previous one, is valid for three years, from the date of its signing.
The swap transaction provides a tool for central banks to have access to the local currency of the other party, as per the need that may arise, time after time. The agreement allows the Albanian banking system to use Yuan funds to support the needs of economic agents to boost trade and financial relations between the two countries.
It aims to promote bilateral trade and direct investments for economic development, and to support financial stability, if market conditions dictate the needs for such liquidity.
The signing of the agreement is an expression of the cooperation and relations between the two central banks.
Bank of Albania and PBC signed the first local currency swap agreement of a maximum amount of 2 billion yuan in 2013 with the option to extend it by mutual consent.