$6.93 billion.. value of a currency exchange deal between Saudi Arabia and China

The Saudi Central Bank, also known as the Saudi Arabian Monetary Agency, and the People's Bank of China signed a local currency swap agreement worth 26 billion Saudi riyals ($6.93 billion) as cooperation between the two countries continues to strengthen.

Financial cooperation between the Saudi Central Bank and the People's Bank of China

According to the Monetary Agency, the three-year agreement “was established in the context of financial cooperation between the Saudi Central Bank and the People’s Bank of China.”

A separate media statement issued by the Chinese central bank highlighted that the reciprocal agreement could extend the swap agreement beyond three years.

Strengthening financial cooperation between Saudi Arabia and China

The bank also indicated that the new deal will help enhance financial cooperation between Saudi Arabia and China, encourage the use of local currencies, and enhance trade and investments between the two countries.

Currency swap agreements are financial contracts between two countries to exchange a predetermined amount of one currency for an equivalent value in another currency.

Strengthening trade relations with China

The kingdom, one of the world's largest oil exporters, has recently strengthened trade ties with China beyond hydrocarbons.

In August, a report issued by the General Authority for Statistics revealed that the Kingdom’s exports to China amounted to 13.7 billion Saudi riyals ($51.3 billion), making the Asian giant its primary trading partner.

The Kingdom's imports from China

The Kingdom's imports from China amounted to 11.8 billion riyals in the same month.

In September, Saudi Arabia and China signed a memorandum of understanding to share expertise in modern transportation systems, including high-tech methods to enhance roads, build autonomous vehicles, and improve shipping and port operation.

In the same month, in order to strengthen tourism relations between countries, Saudi Arabia was officially granted approved destination status by China, allowing Chinese citizens to travel to the Kingdom on group tours.

Tourism sector

The agreement is expected to enhance communication between countries and open opportunities in the tourism sector.

In October, the Literary, Publishing and Translation Authority of Saudi Arabia cooperated with the National Press and Publication Administration of China to promote literary translation.

Under this agreement, the two countries will work together to strengthen cultural relations, promote content exchange, and promote literary cooperation.