The People’s Bank of China (PBOC) and the European Central Bank (ECB) have agreed to establish a bilateral currency swap, according to a recent Bloomberg report. It is thought that the currency swap arrangement should lead to increased trade finance in the euro area and strengthen the internationalization of the yuan/RMB. The swap will be valid for three years with the ECB receiving a maximum US$57 billion (RMB 350 billion yuan) and the PBOC receiving a maximum US$61 billion of the euro.