SA in R57bn currency swap deal with China

Johannesburg - The South African Reserve Bank (SARB) said on Friday it has signed a three-year bilateral swap agreement with the People’s Bank of China (PBoC) for the exchange of local currencies between the two central banks of up to 30bn yuan (R57bn).

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 bank said in a statement.
 
"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," the bank said.

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