Currency Swap Agreements China

In June 2013, the United Kingdom was the first G7 country to set up an official currency exchange line with China. [20] In mid-June 2020, Turkey concluded an exchange with China. BSAs, worth $1.7 billion between the two countries, accounted for about 8 percent of the total trade value of $US 21.08 billion between the two nations in 2019. Following an attempt by the government to support the Turkish lira, Turkey had desperately exhausted its foreign exchange reserves and sought help from financiers such as the IMF and the United States. Having been unable to secure significant financing, Turkey turned to China for help through its swap agreement. Overall, China limits the amount of renminbi available for trade settlement and swaps have been used to obtain the renminbi after reaching these limits.