Mainland, Hong Kong extend currency swap deal

BEIJING - The People's Bank of China (PBOC), the country's central bank, said Monday it has extended a currency swap agreement with the Hong Kong Monetary Authority.

The size of the swap line is 400 billion yuan ($60.6 billion) or HK$470 billion, according to a PBOC statement.

The two parties believe the extension will help maintain regional financial stability, support trade and investment between the mainland and Hong Kong, and develop Hong Kong's offshore yuan market, the PBOC said.

The pact is valid for three years and 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.