China extends 20bln yuan currency swap deal with Pakistan

BEIJING: China's central bank said on Thursday it has signed a three-year bilateral currency swap agreement with Pakistan worth 20 billion yuan ($3.13 billion).

The People's Bank of China (PBOC) said on its website the swap deal would help bilateral trade and investment.

According to Xinhua, the two parties believe the extension will facilitate bilateral trade and investment to help economic development in the two countries.

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 amounts in the other to facilitate bilateral trade settlements and provide liquidity support to financial markets.