Anna 
During the annual Boao Forum for Asia, China’s central bank governor, Pan Gongsheng, reaffirmed China’s commitment to promoting currency swaps and bolstering monetary cooperation with Asian economies to uphold regional financial stability.
Governor Pan highlighted the significance of bilateral currency swaps in facilitating trade and investment, emphasizing their role as a valuable addition to the global financial safety net. He noted that such swaps can offer emergency liquidity support during periods of turmoil in international financial markets and banking crises in certain countries.
According to Pan, the People’s Bank of China (PBOC) has inked bilateral local currency swap agreements with the central banks and monetary authorities of 29 countries and regions, totaling approximately 4 trillion yuan ($553.49 billion).
Pan stressed the importance for Asian countries to advocate for reforms in the quotas and voting shares of the International Monetary Fund (IMF) to improve the representation of emerging markets. He also underscored that China’s bilateral currency swaps with selected nations play a crucial role in IMF-led international bailout relief packages.
Last year, Reuters reported that Argentina had intended to utilize disbursements from the IMF to repay China a portion of the funds borrowed through a currency swap line, illustrating the practical implications of China’s bilateral currency swaps.
The remarks by Governor Pan reflect China’s commitment to fostering regional financial stability through enhanced monetary cooperation and currency swaps, reinforcing its role as a key player in the global financial landscape.
