Malaysia and China Renew and Expand Bilateral Currency Swap Agreement to RMB 220 Billion

Kuala Lumpur, 7 August 2026 – Bank Negara Malaysia and the People’s Bank of China have renewed their bilateral currency swap arrangement for another five-year tenure, while expanding the capacity of the facility to RMB 220 billion (RM 130 billion). The decision extends a foundational pillar of monetary cooperation between the two central banks through 2031, bolstering liquidity support for cross-border commercial transactions and deepening financial integration between Southeast Asia’s third-largest economy and its top trading partner.

Under the expanded agreement, the swap threshold increases from the previous RMB 180 billion (RM 110 billion) framework. First established in 2009 and subsequently renewed in 2012, 2015, 2018, and 2021, the bilateral arrangement provides a standardized mechanism for monetary authorities to exchange local currencies directly. By ensuring guaranteed access to Renminbi and Ringgit liquidity for commercial banks operating across both jurisdictions, the arrangement lowers transaction friction, reduces foreign exchange conversion costs, and facilitates seamless trade and foreign direct investment settlement without requiring third-party intermediary currencies.