Chinese Mainland, Hong Kong Expand Currency Swap in Boost for Offshore Yuan

China’s central bank and the Hong Kong Monetary Authority (HKMA) said they have expanded their currency swap facility and made the arrangement permanent, marking another step in cementing the city’s role as an offshore yuan hub.

The People’s Bank of China (PBOC) has signed an agreement with the HKMA, the city’s de facto central bank, to expand the facility to 800 billion yuan ($119.3 billion), or HK$940 billion, from 500 billion yuan, or HK$590 billion, according to statements released by both institutions on Monday.