BEIJING: The People’s Bank of China and the central bank of Saudi Arabia recently signed a local currency swap agreement, China’s central bank said in a statement on Monday, which will be valid for three years and can be extended by mutual agreement.

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Worth 50 billion yuan ($6.93 billion) or 26 billion Saudi riyals, “the establishment of a bilateral currency swap arrangement between China and Saudi Arabia will help strengthen financial cooperation between the two countries, expand the use of local currencies and promote trade and investment,” the statement read.