CAIRO — Egypt and China on Dec 6 signed a currency swap agreement worth 18 billion yuan (about $2.62 billion) to bolster economic activities in the north African country.
The deal, signed between the Central Bank of Egypt (CBE) and the People’s Bank of China, will last three years and can be extended upon agreement of both sides, CBE said in a statement.
“The currency swap is a mutually beneficial arrangement between both countries, and mirrored China’s support for the Egyptian economic reform program,” it added.
The deal also complemented a series of measures taken by Egypt for unleashing the enormous potentials of its economy and instill confidence by bolstering economic activities, the statement added.
It allows the two institutions to exchange payments in one currency for equivalent amounts in the other, to facilitate bilateral trade settlements and provide liquidity support to financial markets.
The deal came as Egypt adopted some measures for economic reform to revive its ailing economy, varying from raising the subsidized fuel prices and floating the Egyptian pound.
Egypt and China celebrate this year the 60th anniversary of diplomatic relations and the two countries and high-profile delegations at all levels have been meeting frequently since 2015.