Beijing, China / Ulaanbaatar, Mongolia, June 26 – Brussels Morning Newspaper — Central bank liquidity received a fresh boost after the People’s Bank of China and the Bank of Mongolia renewed their bilateral currency swap agreement, reinforcing financial cooperation between the neighboring countries. The extension is expected to support cross-border trade, improve access to local currency funding, and strengthen financial stability as global markets continue to face economic uncertainty.
The renewed agreement allows both central banks to exchange their respective currencies under pre-agreed terms, helping ensure sufficient liquidity for eligible financial transactions. The arrangement also encourages greater use of local currencies in bilateral trade while reducing reliance on third-party currencies for settlements.
The move highlights continued economic cooperation between China and Mongolia, whose trade relationship remains closely tied through exports, imports, and investment. Financial analysts say the renewal sends a positive signal to markets by maintaining an important monetary safety mechanism for businesses and financial institutions.
“The renewal of the bilateral currency swap agreement reflects the continued commitment of both central banks to promoting financial cooperation and regional stability,”
the People’s Bank of China said in its official announcement.
The agreement is expected to strengthen regional financial resilience and provide greater confidence for businesses engaged in cross-border commerce as both countries continue expanding economic cooperation.
