The People's Bank of China said yesterday that it has signed a 150 billion yuan (US$22.12 billion) currency swap agreement with the Monetary Authority of Singapore.

The agreement has a three-year maturity and can be extended if both sides agree, according to the statement posted on the PBOC website.

The move is aimed at promoting bilateral trade and direct investment, it said.

"The bilateral currency swap arrangement is a key pillar of cooperation between the PBOC and MAS to strengthen regional economic resilience and financial stability," MAS, the central bank of Singapore, said on its website.

Chinese Vice Premier Wang Qishan and Singaporean Deputy Prime Minister Wong Kan Seng attended the signing ceremony in Beijing.

The two officials jointly chaired several meetings, one on China-Singapore cooperation, another on Suzhou Industry Park in Jiangsu Province and also on Tianjin Eco-City project. Both sides are cooperating on the Suzhou and Tianjin projects.

Since late 2008, China's mainland has signed currency swap agreements with South Korea, Malaysia, Belarus, Indonesia, Argentina and Iceland, as well as Hong Kong.

The arrangements facilitate cross-border trade settlement in the Chinese currency.