FinObservatory

Chinese overseas lending / Swap lines

The central-bank liability inside the reserves number

15countries have carried a drawn balance on a People’s Bank of China swap line at some point between 2012 and 2021. A drawing is not a loan to a government, it is a liability of one central bank to another, and it can sit inside the gross reserves figure the market reads without being netted out of it. In 2021, 10 countries carried a balance, and for 3 of them the drawn balance exceeded 40% of gross international reserves.

15
Countries that have ever drawn
2012 to 2021
10
Carrying a balance in the last year
2021
$38.90bn
Largest combined drawn balance
2021, 10 countries
5
Drew, then carried no balance by the last year
2021

Combined drawn balance, 2012 to 2021

Summed across every country carrying a balance in that year. Each row also gives how many countries that was.

Source: Horn, Reinhart and Trebesch, China’s Overseas Lending. Selection: drawn PBoC swap-line balances summed over all countries with a balance in each year, 2012 to 2021. Methodology

Every country that has drawn, by largest balance

CountryPeak drawn balancePeak yearYears with a balanceBalance in 2021
Argentina$20.41bn20218$20.41bn
Turkey$5.49bn20212$5.49bn
Pakistan$4.71bn20219$4.71bn
Egypt$2.83bn20215$2.83bn
Mongolia$1.88bn202110$1.88bn
Sri Lanka$1.57bn20211$1.57bn
Malaysia$1.10bn20202$1.03bn
Ukraine$798m20151none
Nigeria$520m20214$520m
Lao People's Democratic Republic$300m20202$300m
Russia$176m20174none
Suriname$157m20217$157m
Belarus$154m20151none
Thailand$82m20133none
Tajikistan$0.14m20161none

Source: Horn, Reinhart and Trebesch, China’s Overseas Lending. Selection: every borrower with a drawn PBoC swap-line balance in at least one year of the panel; "none" in the last column is a reported zero, meaning no balance outstanding, not a missing figure. Methodology

Drawn balance against gross reserves, year by year

One row per country-year with a balance outstanding: 60 in total. Reserves are gross international reserves including gold (World Bank FI.RES.TOTL.CD) for the same country and the same year. The final column is a ratio of two stocks, not a statement that the reserves consist of the swap.

YearCountryDrawn swapGross reservesDrawn as % of gross reserves
2021Argentina$20.41bn$39.65bn51.5%
2021Sri Lanka$1.57bn$3.14bn50.0%
2021Mongolia$1.88bn$4.38bn43.0%
2021Pakistan$4.71bn$22.81bn20.6%
2021Suriname$157m$992m15.8%
2021Lao People's Democratic Republic$300m$1.95bn15.4%
2021Egypt$2.83bn$39.82bn7.1%
2021Turkey$5.49bn$111.18bn4.9%
2021Nigeria$520m$41.73bn1.2%
2021Malaysia$1.03bn$116.92bn0.9%
2020Argentina$19.89bn$39.40bn50.5%
2020Mongolia$1.84bn$4.55bn40.4%
2020Suriname$153m$585m26.2%
2020Pakistan$3.06bn$18.52bn16.5%
2020Lao People's Democratic Republic$300m$1.89bn15.8%
2020Egypt$2.75bn$38.97bn7.1%
2020Malaysia$1.10bn$107.64bn1.0%
2020Nigeria$156m$38.03bn0.4%
2019Argentina$18.61bn$44.88bn41.5%
2019Mongolia$1.72bn$4.36bn39.4%
2019Suriname$141m$648m21.7%
2019Pakistan$2.86bn$16.59bn17.3%
2019Egypt$2.58bn$44.57bn5.8%
2019Nigeria$208m$39.38bn0.5%
2018Mongolia$1.75bn$3.55bn49.3%
2018Argentina$18.97bn$66.22bn28.6%
2018Pakistan$2.92bn$11.84bn24.7%
2018Suriname$139m$581m23.9%
2018Egypt$2.63bn$41.84bn6.3%
2018Nigeria$98m$43.72bn0.2%
2018Russia$130m$468.65bn0.0%
2017Mongolia$1.84bn$3.02bn61.1%
2017Suriname$154m$425m36.2%
2017Argentina$10.75bn$55.31bn19.4%
2017Pakistan$1.54bn$18.46bn8.3%
2017Egypt$2.76bn$36.40bn7.6%
2017Russia$176m$432.73bn0.0%
2016Mongolia$1.73bn$1.30bn132.4%
2016Suriname$144m$381m37.8%
2016Argentina$10.07bn$38.41bn26.2%
2016Pakistan$1.44bn$22.03bn6.5%
2016Turkey$143m$104.81bn0.1%
2016Thailand$72m$171.77bn0.0%
2016Russia$130m$377.05bn0.0%
2016Tajikistan$0.14m$645m0.0%
2015Mongolia$1.77bn$1.32bn134.0%
2015Suriname$154m$330m46.6%
2015Argentina$10.78bn$25.52bn42.3%
2015Pakistan$1.54bn$20.03bn7.7%
2015Ukraine$798m$13.30bn6.0%
2015Belarus$154m$4.17bn3.7%
2015Thailand$77m$156.46bn0.0%
2015Russia$1.54m$368.04bn0.0%
2014Mongolia$1.47bn$1.65bn89.0%
2014Pakistan$1.06bn$14.31bn7.4%
2014Argentina$2.32bn$31.41bn7.4%
2013Mongolia$983m$2.25bn43.7%
2013Pakistan$819m$7.65bn10.7%
2013Thailand$82m$167.23bn0.0%
2012Mongolia$334m$4.13bn8.1%

Source: Horn, Reinhart and Trebesch, China’s Overseas Lending (estimated stocks), and World Bank World Development Indicators, FI.RES.TOTL.CD, total reserves including gold (reserves). Selection: every country-year in the panel with a drawn PBoC swap-line balance above zero, joined to gross international reserves including gold for the same country-year. Methodology

What this cannot tell you

  • Whether the drawn balance is actually inside the reserves figure. The two series come from different sources and are not consolidated with each other. What the ratio establishes is scale: the drawn balance is that large relative to gross reserves. Whether a given central bank has already netted it out is a question this data cannot answer.
  • The terms. Tenor, rollover history, interest and collateral are not in the panel. A balance that is rolled indefinitely and one that matures next quarter look identical here.
  • Anything after 2021. The panel ends there, and the reserves series in this estate runs later. Every row above is pinned to a year the swap panel actually covers.