Arab Finance: The People's Bank of China (PBOC) has extended its bilateral currency swap agreement with the Central Bank of Egypt (CBE) for an additional three years, alarabiya.net reported.
The move reaffirms the two countries' ongoing financial and monetary cooperation and supports the use of local currencies in trade and investment transactions.
The two central banks first signed the currency swap agreement in December 2016, at a value of 18 billion yuan (approximately $2.6 billion). The arrangement was designed to support financial stability, provide liquidity in local currencies, and facilitate trade between Egypt and China.
Currency swap agreements enable central banks to exchange their currencies for a specified period, helping to facilitate trade and investment flows while reducing reliance on major foreign currencies in cross-border transactions.
The extension comes amid growing economic ties between Egypt and China, supported by rising Chinese investments in the Egyptian market and expanding cooperation across infrastructure, industrial, and energy projects.
