Backgrounder: China's currency swap deals

China has signed dozens such agreements so far, let us take a quick review of the deals signed with major economies.

On June 22, the PBOC signed a 3-year currency swap with the Bank of England, of 200 billion yuan or 20 billion pounds. Britain is also the first G7 country that sealed a swap agreement with China. Previously, Iceland had already signed a $500 million deal with China on June 9th 2010.

In Oceania, the PBOC and the Reserve Bank of Australia signed their swap line at 200 billion yuan or A$30 billion in March last year, for a period of 3 years but prolongable. On April 19th 2011, the PBOC and the Reserve Bank of New Zealand also signed one at 25 billion yuan.

Looking at Asia, on Oct 26 in 2011, China and South Korea doubled the existed currency swap to 360 billion RMB, from a previous 180 billion yuan. In February 2009, China and Malaysia had already signed a deal at 80 billion yuan, also with three-year validity.