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Currency Swap between China and the EU: Causes, Impacts and Prospects

On 9 October 2013, the central banks of China and the European Union (EU) signed the bilateral currency swap agreement with a volume of 350 billion RMB (ren min bi, the Chinese currency), around 45 billion euros. From a historical perspective both China and the EU have signed many currency swap agreements with other countries, but this is the first time that the two largest economies in the world signed a currency swap agreement. Why did they sign the agreement? And what is the impact of the agreement on both China and the EU?