BN, PBOC renew currency swap arrangement

Malaysia's central bank is likely to cut its benchmark rate to 3% at a policy review on Tuesday to cope with a slowdown in growth, a slim majority of analysts in a Reuters poll said.

KUALA LUMPUR: Bank Negara Malaysia and the People's Bank of China have agreed to renew the bilateral currency swap arragement with a size of RMB180 billion/RM110 billion for a further tenure of three years.

The agreement was first established in 2009 and renewed in 2012 and 2015.

"The renewal of the agreement demonstrates continuous commitment in promoting the use of local currencies for settlement of bilateral trade and direct investment between Malaysia and China," BN said in a statement today.