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China Renews Bilateral Local Currency Swap Agreements with EU, Switzerland, and Hungary

Strategic Insights

— 1 min read

As part of its ongoing efforts to deepen financial cooperation and promote trade facilitation, the People's Bank of China has renewed bilateral local currency swap agreements with the European Central Bank (ECB), the Swiss National Bank (SNB), and the Hungarian National Bank (MNB). The agreements, signed on September 7-8, 2025, have been renewed with significant increases in size, aimed at maintaining financial market stability and promoting economic growth in the regions involved.

Key Takeaways:

  • The China-EU bilateral local currency swap agreement has been renewed with a size of 350 billion yuan (45 billion euros), valid for 3 years.
  • The China-Switzerland bilateral local currency swap agreement has been renewed with a size of 150 billion yuan (17 billion Swiss francs), valid for 5 years.
  • The China-Hungary bilateral local currency swap agreement has been renewed with a size of 40 billion yuan (1.9 trillion Hungarian forints), valid for 5 years.
  • The agreements aim to deepen bilateral monetary and financial cooperation, promote trade and investment facilitation, and maintain financial market stability.
  • The renewal of the agreements reflects China's commitment to strengthening financial ties with its international partners, particularly in the EU and Switzerland.

Statistics:

  • The China-EU bilateral local currency swap agreement has a size of 350 billion yuan (45 billion euros), with a validity period of 3 years.
  • The China-Switzerland bilateral local currency swap agreement has a size of 150 billion yuan (17 billion Swiss francs), with a validity period of 5 years.
  • The China-Hungary bilateral local currency swap agreement has a size of 40 billion yuan (1.9 trillion Hungarian forints), with a validity period of 5 years.
  • The total size of the bilateral local currency swap agreements has increased by 250% compared to the original agreements, with a total size of 540 billion yuan (72 billion euros) or 1.94 trillion Hungarian forints.

Sources:

  • People's Bank of China

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