China, Switzerland sign currency swap agreement

At the entrance to the Swiss National Bank SNB in Berne, Switzerland, pictured on July 16, 2012. [Photo/IC]

BEIJING - China's central bank announced on Monday that it signed a bilateral currency swap agreement with the Swiss National Bank (SNB) worth 150 billion yuan, or 21 billion Swiss francs ($24.4 billion).

The term of the swap agreement will be three years and can be extended if both parties agree, the People's Bank of China (PBoC) said in an online statement.

The signing of the currency swap deal can help facilitate trade and investment between China and Switzerland and provide liquidity support for the development of the offshore yuan market in Switzerland, the PBoC said.

In a separate statement on Monday, the SNB said it was also granted an investment quota for the Chinese interbank bond market in the amount of 15 billion yuan.

Since 2009, China has set up bilateral currency swap lines with more than 20 countries and regions.