Sri Lanka renews $1.4 bln worth Chinese Yuan currency swap
- 5opn1
- January 17, 2025
- Banking and Financial
- Sri Lanka renews $1.4 bln worth Chinese Yuan currency swap
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Sri Lanka has renewed a $1.4 billion worth Yuan currency swap with China during the official Beijing visit of President Anura Kumara Disanayake, a joint statement by the both countries said.
The three-year agreement which was signed with the People’s Bank of China (China’s Central Bank) in 2022 entitled the Central Bank of Sri Lanka for a swap facility amounting to 10 billion Chinese Yuan (approximately $ 1.4 billion).
“The Central Bank of Sri Lanka and the People’s Bank of China have renewed their currency swap agreement and will continue to carry out financial cooperation,” the joint statement said without any further details.
The island nation signed the deal when it was facing shortage of foreign currency inflows and decline in its reserves.The $1.4 billion Chinese Yuan swap, however, cannot be used for any imports if gross international reserves fall below 3 months of past year’s imports.
