BEIJING -- The foreign ministers of China and Mongolia confirmed at a meeting here Monday that the two countries will extend a currency swap agreement that had been set to expire in August.
Following the meeting with Mongolian Foreign Affairs Minister Tsendiyn Munkh-Orgil, Chinese Foreign Minister Wang Yi told reporters China seeks to extend the agreement "so Mongolia can overcome its difficulties." The extension applies to a 2014 swap line agreement worth 15 billion yuan ($2.18 billion). Because Mongolia can use the yuan in settlements with China -- its largest trading partner -- it can conserve foreign currency reserves.
The International Monetary Fund announced Sunday $5.5 billion in international support for Mongolia, which is facing an economic crisis. The package included a reference to China's willingness to extend the currency swap agreement.