Russian President Vladimir Putin (L) delivers a speech during a congress of the Chamber of Commerce and Industry in Moscow, Russia, March 1, 2016. REUTERS/Alexei Nikolsky/Sputnik/Kremlin

Bank of Russia: Ready to use forex swap with PBOC

March 2, 2016

MOSCOW–Russia and China have agreed to open a bilateral foreign-exchange swap line to boost trade and investment cooperation, the Bank of Russia said Wednesday.

The Bank of Russia said the two parties successfully tested forex swaps in 2015 and were ready to enact the forex swap if needed.

Earlier, Russia and People’s Bank of China had opened a forex swap line for 815 billion rubles ($11.1 billion) and 150 billion yuan ($22.9 billion), Russia’s central bank said.
Cut off from global capital markets by Western sanctions, Russia is stepping up efforts to secure access to external funding, including plans for a sovereign Eurobond later this year.

Moscow regards China as one of its closest allies and aims to get financial support from Beijing in the energy sector and financial markets as Russia’s relations with the West are strained after its annexation of Crimea and conflict in eastern Ukraine.