"The ECB and the PBC have successfully completed tests of their existing bilateral currency swap arrangement. From a Eurosystem perspective, the arrangement serves as a backstop facility to address sudden and temporary disruptions in the renminbi market due to liquidity shortages in euro area banks," the central bank said.
The currency swap deal was signed in October 2013 and totalled €45 billion or 350 billion yuan. The central banks conducted tests in April and November this year.
"The ECB regularly conducts tests of its instruments and operations in order to ensure its operational readiness. The scheduling of such tests is not linked to market conditions and should not be seen as signalling any intention of the central banks to request funds from each other to provide counterparties with liquidity in the respective currency," the ECB noted.