: :inin Kyiv (EET)

Ukraine to open $2.4 billion swap line with China

Ukraine and the People’s Republic of China have agreed to strengthen trade relations at the highest level, including realization of previously signed agreements on a swap line between two countries’ currencies totaling 15 billion Chinese renminbi (about USD 2.44 billion ).
Governor of the National Bank of Ukraine Valeriya Gontareva reported the news at the World Economic Forum in Davos, Switzerland, the press service of the Bank reported on Facebook.
“National Bank of Ukraine starts practical implementation of a swap line with China worth about $2.4 billion which could be used to finance trade contracts and help stabilize Ukraine’s economy by reducing importers’ demand for foreign currency. We expect appreciation of Ukraine’s currency in the medium term along with stabilization of the situation and support of our donors and international partners,” she said.
As a background note, President of Ukraine Poroshenko and Prime Minister of the People’s Republic of China Li Keqiang agreed to realize previously signed agreements on swap transactions with currencies of the two countries totaling 15 billion Chinese renminbi on Wednesday during a meeting in Davos.
Note. Swap-line is an agreement between the central banks of different countries to exchange their currencies at a fixed rate.

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