27 September 2016
Brussels
Reporter: Drew Nicol

EU and China’s central bank extend swaps deal


The European Central Bank (ECB) and the People’s Bank of China (PBC) have extended their bilateral currency swap arrangement for another three years.

The arrangement has a maximum size of CNY 350 billion and €45 billion and can serve as backstop renminbi liquidity facility for euro area banks.

In a statement on the renewal, the ECB said: “Liquidity providing arrangements contribute to global financial stability. The arrangement with the PBC is a recognition of the rapidly growing bilateral trade and investment between the euro area and China.”

The agreement’s extension comes after the ECB and PBC conducted two tests in April and November 2015 that provided symbolic amounts of euro and renminbi liquidity respectively.

According to the ECB, these tests were successful and demonstrated the central banks’ “operational readiness to activate the swaps if needed on the basis of bilaterally agreed operational procedures”.

More repo news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Myanmar sees first ever repo transaction
26 July 2017 | Myanmar | Reporter: Jenna Lomax
KBZ Bank and YOMA Bank have carried out the first ever repo trade in Myanmar
Russia’s NSD gains repo contract parity
13 July 2017 | Moscow | Reporter: Drew Nicol
The standard form of the master agreement allows NSD clients to reduce the time required to develop contractual documents with counterparties
Deutsche Börse engages T7 for cash
04 July 2017 | Frankfurt | Reporter: Drew Nicol
Deutsche Börse shifts cash trading onto T7 and Eurex introduces new derivative hedging tools for the buy side
DTCC completes first trade on CCIT platform
30 June 2017 | New York | Reporter: Drew Nicol
The first trade comes a month after the US SEC approved rule changes allowing institutional investors to participate directly in the clearinghouse through CCIT membership
ICMA: NSFR makes EU repo less attractive
23 June 2017 | London | Reporter: Drew Nicol
The association also point to increased automation of highly manual and labour-intensive processes of the market as a way to mitigate rising costs and create efficiencies
UK Money Markets Code to rebuild trust
22 June 2017 | London | Reporter: Drew Nicol
Industry representatives drafted the code in partnership with the Bank of England (BoE) to replace the previous guidance, which has been judged to be outdated
Dealerweb claims significant US repo market share
20 June 2017 | New York | Reporter: Drew Nicol
The Dealerweb marketplace now captures 18 percent of US repo activity in inter-dealer trading