RECORDER REPORT

KARACHI: The currency swap arrangement between the State Bank of Pakistan (SBP) and People’s Bank of China (PBOC) has been extended for 3 years in respective local currencies.

In the extended agreement, both the central banks have agreed to increase the CSA amount from CNY 10 billion to CNY 20 billion and from PKR 165 billion to PKR 351 billion.

According to SBP, the increase in the CSA amount reinforces the commitment of the two central banks to promote the usage of local currencies in bilateral trade and investment and strengthening financial cooperation between the two countries.

First swap agreement with China was signed on December 23, 2011, for 3 years in respective local currencies, ie, Rs 140 billion and Chinese yuan 10 billion.

The objective of the swap is to promote bilateral trade, finance direct investment between the two countries in the respective local currencies and any other purpose as mutually agreed between the two central banks.