The People's Bank of China (PBC) and the Monetary Authority of Singapore (MAS) on Friday announced the establishment of a bilateral currency swap arrangement.

According to a statement by the MAS, the bilateral currency swap arrangement, aiming to promote bilateral trade and direct investment for economic development of the two countries, is a key pillar of co-operation between the PBC and the MAS to strengthen regional economic resilience and financial stability.

The bilateral currency swap arrangement will provide Chinese Yuan liquidity of up to 150 billion Chinese yuan and Singapore dollar liquidity of up to 30 billion Singapore dollars (about 22 billion U.S. dollars).

The effective period of the arrangement will be three years and can be extended by agreement between the two sides.