Hungary's central bank renews currency swap deal with China's central bank

BUDAPEST (Reuters) - A bilateral forint-renminbi currency swap agreement between the National Bank of Hungary and the People’s Bank of China has been renewed for three years and its total amount has been doubled, the Hungarian central bank said in a statement on Friday.

The agreement, which the NBH says functions as a safety net, was originally concluded in 2013.

“In line with China’s growing share of world economy and the Chinese renminbi’s increasingly significant role in the international monetary system, the previous total amount of 10 billion (yuan) has been raised to 20 billion,” the NBH said.

“In case of the potential use of the swap agreement, the renminbi assets will be included in the NBH’s FX reserves.”

Reporting by Krisztina Than