(Yicai Global) Jan. 9 -- People's Bank of China and Bank of Thailand have renewed the bilateral currency swap agreement between the central banks of the two countries, maintaining the CNY70 billion (USD10.7 billion) level. It allows PBOC to swap this amount for THB370 billion.

The deal aims to facilitate bilateral trade and investments to promote economic development in both countries, said a statement on PBOC website yesterday.

The swap agreement will have an effective period of three years, subject to extension by mutual consent of both parties, said the statement.

The two banks first inked the 70-billion-yuan currency swap deal in December 2014. "A currency swap deal allows two institutions to exchange payments in one currency for equivalent amounts in the other, to facilitate bilateral trade settlements and provide liquidity support to financial markets," said state-run Xinhua News Agency.