China, Egypt Deepen Financial Partnership Through Expanded Currency Swap Agreement

China and Egypt renewed and significantly expanded their bilateral local-currency swap agreement, marking a major step toward deepening financial cooperation and promoting the use of the Chinese yuan and Egyptian pound in growing trade and investment activities between the two countries.

The renewed agreement, announced by the People's Bank of China, will remain in effect for three years and may be extended upon mutual consent. Under the new arrangement, the value of the currency swap has increased to 30 billion yuan, up from 18 billion yuan under the previous agreement, representing an increase of nearly 67 percent.

Economic analysts described the move as a strategic milestone that reflects the strength of Sino-Egyptian economic relations and signals a clear commitment by both governments to building a more advanced and sustainable financial partnership.

The currency swap mechanism is expected to facilitate bilateral trade by reducing dependence on third-party currencies, lowering transaction costs, and enhancing financial stability for businesses operating between the two markets.

China and Egypt first signed a local-currency swap agreement in late 2016, valued at 18 billion yuan, equivalent at the time to approximately $2.65 billion. The arrangement was designed to support trade, investment flows, and financial cooperation while encouraging the use of national currencies in cross-border transactions.

Momentum for expanding the agreement accelerated earlier this year. During a telephone conversation on March 25, 2026, Egyptian Minister of Foreign Affairs, Emigration and Expatriates Badr Abdelatty expressed appreciation for financial cooperation with China, including the currency swap framework, and conveyed Cairo’s interest in increasing its value, according to a statement previously issued by Egypt’s Foreign Ministry.

The extension also comes amid broader efforts to strengthen financial and investment ties between the two nations. Last year, Egypt announced measures allowing Chinese companies to use the yuan in financial transactions, a move viewed as part of the country's strategy to diversify financing channels and facilitate international business operations.

The renewed agreement coincides with the celebration of the 70th anniversary of diplomatic relations between China and Egypt, highlighting a period of expanding economic engagement, growing trade volumes, and increasing strategic cooperation across multiple sectors.