KUALA LUMPUR: Bank Negara Malaysia and the People's Bank of China (PBOC) have renewed their bilateral currency swap arrangement for another five years, while expanding its size to RMB220 billion (RM130bil) from RMB180 billion (RM110bil) previously.

“The agreement was first established in 2009 and renewed in 2012, 2015, 2018 and 2021.

“The renewal and expansion of the arrangement reaffirm the long-standing cooperation between both central banks,” the central bank said in a statement.

Bank Negara said the arrangement facilitates the use of local currencies in the settlement of bilateral trade and investment between the two countries.

It added that the agreement would also strengthen economic and financial linkages between Malaysia and China while contributing to the resilience of regional financial stability.

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