The People's Bank of China (PBC), the central bank, announced on July 23 a bilateral currency swap agreement with the Monetary Authority of Singapore (MAS).

The arrangement is a key pillar of cooperation between the PBC and the MAS and will strengthen regional economic resilience and financial stability, said the MAS, the central bank of Singapore, in a statement on its website.

The agreement, aiming to promote bilateral trade and direct investment for the economic development of the two countries, will provide Chinese yuan liquidity of up to 150 billion yuan ($22 billion) and Singapore dollar liquidity of up to 30 billion Singapore dollars ($22 billion). It has a three-year maturity and can be extended if both sides agree, according to the statement on the PBC's website.

It will also facilitate cross-border trade settlements in the Chinese currency, an arrangement now allowed in all countries and regions.