The People's Bank of China (PBOC) and the Reserve Bank of New Zealand today announced the renewal of a reciprocal currency arrangement (swap line) to support the settlement of cross border transactions between New Zealand and Chinese businesses.
The arrangement, first agreed in 2011, aims to promote bilateral trade and direct investment for economic development between the two countries. The size of the swap facility is RMB 25 billion (NZD 5 billion) and it has a three year maturity which may be extended if both parties agree.
Reserve Bank Deputy Governor Grant Spencer said the bilateral currency swap line will further help the international use of the renminbi, and contributes to a strengthening of the China-New Zealand relationship.
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