The South African Reserve Bank (SARB) and the People’s Bank of China (PBoC) are pleased to announce the signing of a bilateral swap agreement, which is valid for three years. The agreement allows for the exchange of local currencies between the two central banks of up to CNY 30 billion (approx. ZAR 57 billion).
The purpose of the agreement is to support trade and investment between South Africa and China, and also to act as a mitigating resource for short term balance of payment pressures.
The swap arrangement has been established in the context of rapidly growing bilateral trade and investment, not only between South Africa and China, but also China and the rest of the African continent.
This arrangement further strengthens the relationship between the SARB and the PBoC following an agreement with PBoC in 2013, which allows the SARB to invest in China’s onshore bond market.
Enquiries:
Hlengani Mathebula
Head: Group Strategy and Communications
Cell: 082 448 9219
Tel: 012 313 4210
