HKMA and China agree currency swap

The Hong Kong Monetary Authority (HKMA) and the People's Bank of China have signed a currency swap arrangement worth up to $29.2 billion.

Under the terms of the arrangement, liquidity support of up to Rmb200 billion ($29.2 billion), or HK$227 billion ($29.2 billion) will be available for three years. The swap can be extended beyond 2012.

"The swap will bolster confidence in Hong Kong's financial stability, and will also help to promote financial stability in the region and the renminbi-denomi