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China's $500 Billion Lifeline Swaps Cash for World-Wide Clout

  • PBOC has currency swap line with more than 30 central banks
  • Lack of transparency means usage of swaps isn’t clear
A man walks past the People's Bank of China headquarters in Beijing.
Photographer: Qilai Shen/Bloomberg

Call it monetary diplomacy.

When China’s central bank renewed a $2.2 billion credit facility with Mongolia earlier this year, the deal gave a lifeline to a struggling neighbor heading for an International Monetary Fund bailout.