China's central bank said Monday that it had signed a bilateral1 currency swap2 agreement with its counterpart in Indonesia.
中国人民银行与印尼央行签署双边货币互换协议。
The agreement will allow the two sides to swap a total of 200 billion yuan (about 28.8 billion U.S. dollars) for 440 trillion Indonesian rupiah, and
vice3 versa, the People's Bank of China (PBOC) said.
The move is aimed at facilitating bilateral trade and investment, and maintaining financial market stability, according to the PBOC.
The agreement will be
valid4 for three years and can be extended by
mutual5 consent.
A currency swap deal allows two institutions to exchange payments in one currency for equivalent amounts in the other to facilitate bilateral trade settlements and provide
liquidity6 support to financial markets.