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The People's Bank of China has announced a currency swap agreement with the Monetary Authority of Singapore. The deal is worth 150 billion yuan or about 30 billion Singapore dollars.
It will be effective over the next three years, with the option to extend. The currency swap aims to promote bilateral trade and direct investment.
Since late 2008, China has signed currency swap agreements with a number of countries including South Korea, Malaysia, and Iceland.
The arrangements would provide yuan liquidity and facilitate cross-border trade settlement in the Chinese currency.
Cross-border yuan trade settlement is now allowed in all countries and regions, after starting first in Hong Kong, Macao, and in 10 member states of the Association of Southeast Asian Nations.