KUALA LUMPUR - The People's Bank of China and Bank Negara Malaysia announced that the two central banks had renewed a currency swap deal on Wednesday, a move aimed at reinforcing the financial cooperation between the two countries.  

The two central banks said in a joint statement that the Bilateral Currency Swap Arrangement Agreement will extend by three years, while the size increased to 180 billion yuan/90 billion ringgit.

The original agreement was established on February 8, 2009, which allows the two banks to swap 80 billion yuan/40 billion ringgit in three years, and could be extended if mutually agreed.

The People's Bank of China and Bank Negara Malaysia said the renewed currency swap agreement will further reinforce the financial cooperation between both economies and facilitate greater bilateral trade and investment.

Bilateral trade between China and Malaysia reached $90 billion for the first time in 2011. Malaysia remained China's biggest trading partner among ten ASEAN countries for the fourth consecutive year, while China retained the position as Malaysia's biggest trading partner.