The agreement was signed by the People’s Bank of China (PBOC) and the Hong Kong Monetary Authority. This is the PBOC’s first permanent swap agreement, according to a statement posted on its website.
The PBOC said the improved agreement could provide more stable and long-term liquidity support to the Hong Kong market, help stabilize market expectations and promote the development of the offshore Hong Kong yuan market.
($1 = 6.7000 Chinese yuan renminbi)