Central banks of Serbia, China conclude new bilateral currency swap agreement

BELGRADE - The People's Bank of China and the National Bank of Serbia (NBS) have concluded their second bilateral currency swap agreement, enabling the exchange of Serbian dinars and Chinese yuan between the two central banks through bilateral swap transactions, the NBS announced on Thursday.

"The value of this five-year agreement amounts to 5 bln yuan, or 74 bln dinars (current equivalent of approximately 630 mln euros). This represents a significant increase compared to the previous three-year bilateral swap agreement concluded between the National Bank of Serbia and the People's Bank of China in June 2016," the NBS said in a statement.

"The new agreement was signed by the Governors of the National Bank of Serbia and the People's Bank of China during the period when a high-level delegation of the Republic of Serbia was visiting the People's Republic of China. This agreement supports the growing trade relations and investments between the two countries, further strengthening their strategic partnership and financial cooperation. The primary purpose of the arrangement is to enhance mutual bilateral trade and direct investments, as well as to support the preservation of financial stability," it said.

"Our dear colleagues from the People's Bank of China have once again demonstrated the iron friendship between our two countries, which is particularly important under current circumstances. For the National Bank of Serbia, this agreement is not merely an available financial line with the People's Bank of China that can be utilised as an additional mechanism to protect the country's financial stability amid elevated global uncertainties; it is also a testament to our long-standing cooperation and the expanding trade and economic relations between Serbia and China. By signing this new agreement, which is more favorable than the initial one in all key aspects - including higher value, better terms of use, and a longer maturity period - the two central banks continue their close cooperation in enhancing macroeconomic security and further deepening economic ties between the Republic of Serbia and the People's Republic of China," Tabakovic said.