China, Pakistan extend currency swap deal

Beijing, May 24: The People's Bank of China, the country's central bank, on Thursday extended a currency swap agreement with the State Bank of Pakistan.

According to a statement from the Chinese bank, the swap was sized at 20 billion yuan ($3.1 billion), Xinhua news agency reported.

The two parties say that the extension will facilitate bilateral trade and investment to help economic development in China and Pakistan. Valid for three years, the agreement can be extended upon mutual consent.

A currency swap deal allows two institutions to exchange payments in one currency for equivalent amount to facilitate bilateral trade settlements and provide liquidity support to financial markets.