RIYADH: The Saudi Central Bank, also known as SAMA, and the People’s Bank of China have signed a local currency swap agreement worth SR26 billion ($6.93 billion) as collaboration between the countries continues to strengthen.
According to SAMA, the three-year agreement “has been established in the context of financial cooperation between the Saudi Central Bank and the People’s Bank of China.”
A separate media release issued by China’s central bank highlighted that the mutual agreement could extend the swap agreement beyond three years.
The bank also noted that the new deal will help strengthen financial cooperation between Saudi Arabia and China, promote the use of local currencies, and strengthen trade and investments between the countries.
Currency swap agreements are financial contracts between two nations to exchange a predetermined amount of one currency for an equivalent value in another currency.
The Kingdom, one of the world’s largest oil exporters, has recently strengthened trade relations with China beyond hydrocarbons.
In August, a report released by the General Authority for Statistics revealed that the Kingdom’s exports to China reached SR13.7 billion ($51.3 billion), making the Asian giant its primary trading partner.
The Kingdom’s imports from China touched SR11.8 billion in the same month.
In September, Saudi Arabia and China signed a memorandum of understanding to exchange expertise in modern transport systems, including high-tech methods to enhance roads, build autonomous vehicles, and improve shipping and the running of ports.
In the same month, to strengthen the tourism relationship between nations, Saudi Arabia was officially granted Approved Destination Status by China, allowing Chinese citizens to travel to the Kingdom on group tours.
The agreement is expected to boost connectivity between countries and open opportunities across the tourism sector.
In October, Saudi Arabia’s Literature, Publishing, and Translation Commission partnered with China’s National Press and Publishing Administration to promote literary translation.
Under this deal, both nations will work together to strengthen cultural ties, enhance content exchange and reinforce literary cooperation.