China's Yuan Sees Record Use in Global Central Banks Swap Lines
A record amount of China’s Yuan was drawn from foreign exchange swap lines by central banks worldwide in Q1 2023. The development is another sign of the Yuan ’s rising international stature. JUST IN: Chinese Yuan reaches record usage in global central banks swap lines in Q1 2023. — Watcher.Guru (@WatcherGuru) May 16, 2023 Currency swaps are agreements where central banks lend and borrow each others’ currencies at the same time, at a certain date. However, there is also a promise to exchange the capital again and pay an agreed interest rate. The People’s Bank of China (PBOC) reported on Monday that the total outstanding balance of all foreign currency swaps was 109 billion yuan ($15.6 billion) at the end of March. This represented the second-largest quarterly increase in history. Moreover, it was 20 billion yuan higher than the level at the end of 2022. The PBOC did not specify which countries have made use of the facility. The increase was brought on by more ...