China and Canada Photo: VCG

Upon approval by the State Council, the People's Bank of China (PBC) and the Bank of Canada have recently renewed their bilateral local currency swap agreement, PBC said on Friday via its WeChat account. The swap scale is 200 billion yuan, with a validity period of five years, which may be extended upon mutual agreement by both parties.

The renewal of the currency swap agreement will help strengthen financial cooperation between the two countries, expand the use of local currencies in bilateral transactions, facilitate trade and investment and contribute to maintaining financial stability, PBC noted.

The two countries issued a joint statement of the China-Canada leaders' meeting on Friday. According to the statement, the two sides decided to reinvigorate the high­level China-Canada Economic and Financial Strategic Dialogue (EFSD) to discuss wide ranging related issues to strengthen bilateral economic relations.

The two sides welcomed the establishment of a Financial Working Group to enhance bilateral engagement on financial issues. The working group will report to the co-chairs of the EFSD. Leaders welcomed the signing of the Third Agreement to Extend and Amend the Chinese Yuan/Canadian Dollar Bilateral Currency Swap Arrangement between the PBC and the Bank of Canada, per the statement.

Global Times