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Bilateral Local Currency Swap Agreement with the People’s Bank of China

Summary:
The Reserve Bank of Australia has extended its bilateral local currency swap agreement with the People's Bank of China (PBC) for a further three years. The agreement, which can be activated by either party, allows for the exchange of local currencies between the two central banks of up to A billion or CNY 200 billion. An initial swap agreement between the two central banks had been signed in 2012, with a subsequent agreement executed in 2015 for a further period of three years. The main purposes of the agreement are to support trade and investment between Australia and China, particularly in local-currency terms, and to strengthen bilateral financial cooperation.

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The Reserve Bank of Australia has extended its bilateral local currency swap agreement with the People's Bank of China (PBC) for a further three years. The agreement, which can be activated by either party, allows for the exchange of local currencies between the two central banks of up to A$40 billion or CNY 200 billion. An initial swap agreement between the two central banks had been signed in 2012, with a subsequent agreement executed in 2015 for a further period of three years.

The main purposes of the agreement are to support trade and investment between Australia and China, particularly in local-currency terms, and to strengthen bilateral financial cooperation.

Reserve Bank Australia
The Reserve Bank of Australia (RBA) came into being on 14 January 1960 as Australia's central bank and banknote issuing authority, when the Reserve Bank Act 1959 removed the central banking functions from the Commonwealth Bank. The bank has the responsibility of providing services to the Government of Australia in addition to also providing services to other central banks and official institutions. It currently consists of the Payments System Board, which governs the payments system policy of the bank, and the Reserve Bank Board, which governs all other monetary and banking policies of the bank.

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