The Bank of Mongolia and the People’s Bank of China have agreed to extend the local currency swap agreement. This positive decision was confirmed during a meeting between Deputy Governor Lkhagvasuren Byadran and Deputy Governor Yi Gang on February 22 in Beijing, reports news.mn.

Currently, the two central banks have conducted RMB 15 billion swaps, due to end in 2017. It is now, however, expected that the maturity will be extended to 2020 by this agreement, which was initially discussed last week when Ts.Munkh-Orgil, Foreign Minister of Mongolia visited Beijing.

The central banks first entered into swap arrangement in 2011 with a total of RMB 5 billion. The swap line was expanded two times in 2012 and 2014 to RMB 15 billion.