The Swiss National Bank (SNB) and the People’s
Bank of China (PBOC) have entered a currency swap line to boost
trade and investment. While the deal signals
Switzerland’s ambitions as an offshore renminbi
(RMB) hub, the success of its plans now rest with China.
Signed on July 21, the swap agreement allows the Swiss and
Chinese central banks to buy and sell their currencies, up to
RMB 150 billion, or 21 billion Swiss francs ($23.4
The PBOC has also granted the SNB an investment quota of RMB
15 billion, or just over 2 billion Swiss francs, for the
Chinese interbank bond market.
Switzerland is hoping the deal is the start of a process