China and Hungary sign FX swap deal

Swap is worth US$1.62 billion.

The People's Bank of China, China's central bank, yesterday signed a currency swap agreement with the Central Bank of Hungary or the Magyar Nemzeti Bank.

Under the agreement, the MNB can secure Chinese renminbi up to the agreed amount of US$1.62 billion, which can be used to finance Hungary’s market participants’ activities in case of need.

The agreement will last for three years and can be extended if both sides agree. It was approved by the State Council, China's cabinet.

The swap deal aims to strengthen bilateral financial cooperation, promote trade and investment and jointly maintain regional financial stability between both states.