Egypt and China extend a currency exchange agreement for 3 years economy

China and the Central Bank of Egypt renewed a currency exchange agreement between the two countries and increased its value to 30 billion yuan ($4.43 billion), or 203 billion Egyptian pounds, after it was 18 billion yuan (80.7 billion pounds), in the agreement signed in 2016.

The Central Bank of China stated in a statement today, Wednesday, that “following the approval of the State Council, the People’s Bank of China and the Central Bank of Egypt in recent days renewed the signing of the bilateral local currency swap agreement. The validity period of the agreement is 3 years, and it can be extended with the approval of both parties.”

Deepening cooperation

The Chinese Central Bank noted in its statement that “renewing the bilateral local currency swap agreement and expanding its size helps deepen monetary and financial cooperation between the two countries.”

The statement explained that this agreement supports the use of local currencies between China and Egypt, contributes to facilitating trade and investment between the two sides, and maintaining the stability of financial markets.

According to the China Briefing website, in 2023, China exported goods to Egypt worth $13.3 billion, the most important of which are electrical and electronic equipment and cars.

China represents a major trading partner for Egypt, but the trade balance between the two countries tilts in favor of China by a large margin.