The Saudi Central Bank, also known as SAMA, and the People’s Bank of China signed a local currency swap agreement worth 26 billion Saudi riyals ($6.93 billion) as cooperation between the two countries continues to strengthen.
According to the Saudi Arabian Monetary Agency, the three-year agreement “was established in the context of financial cooperation between the Saudi Central Bank and the People’s Bank of China.”
A separate media statement issued by the Chinese central bank highlighted that the mutual agreement could extend the swap agreement beyond three years.
The bank also indicated that the new deal will help enhance financial cooperation between the Kingdom of Saudi Arabia and China, enhance the use of local currencies, and enhance trade and investments between the two countries.
Currency swap agreements are financial contracts between two countries to exchange a predetermined amount of one currency for an equivalent value in another currency.