Since 2009, China has signed monetary swap agreements with many countries and regions such as Argentina, Belarus, Brazil, Canada, the ECB, Hong Kong, Iceland, Indonesia, Malaysia, Singapore, South Korea, Thailand, the United Kingdom, Uzbekistan and Tajikistan.     Renminbi deposits in HK have gradually increased from $12 billion in 2004 to $59 billion in 2009.  Pakistan and Argentina are two of the few nations to have intercepted their BSAs, but not in the traditional sense. In times of financial crisis, Both Pakistan and Argentina used the agreements to obtain RMB and convert them into USD on offshore markets. Another change is that bilateral swat-change agreements were initially concluded with the aim of promoting bilateral trade and direct investment. However, in recent agreements, the objective appears to have shifted towards promoting financial cooperation and stability. In particular, counterparties recently hoped that the agreements would improve their RMB offshore capacity, particularly in London and Singapore, he said. A swap line is not a necessary condition for local companies to make commercial offsets in RMB. The electronic exporter and importer and importers in a foreign country can. B charge and bill for their transactions with RMB. In reality, these are only a few isolated cases in which swap agreements have actually been used. Of China`s 35 BSAs, very few have actually facilitated trade between China and its trading partners.
The agreements certainly strengthen China`s diplomatic influence as a short-term bank with intermediate liquidity when Western institutions are not available; but the impact on trade has been very limited. Despite this, trade deficits and net RMB outflows between trading partners continue to represent the risk of offshore illiquidity that threatens China`s grand strategy. To combat this, China has begun to sign bilateral swap agreements (“BSA”) with almost all concerned. Currently, China has $500 billion in agreements in 35 countries – more than any other country by far – that provide RMB liquidity to trading partners with dry markets to boost long-term trade. To date, swap options have remained largely unused, which is likely a moderate foreign interest product for the renminbi; However, swaps could be increasingly used in global introductions of RMB. “Unlike this type of investment rate, the swap line provides the offshore market, if necessary, with only a source of liquidity and does not grant any other authorization for cross-border capital flows.” In June 2013, the United Kingdom was the first G7 country to establish an official currency exchange line with China.  By providing liquidity in times of crisis, China has proven to be a reliable partner.