BEIJING - The People's Bank of China (PBOC), China's central bank, announced Monday that it has signed a currency swap agreement worth 10 billion yuan ($1.62 billion) with the Hungarian central bank.

The agreement was approved by the State Council, China's cabinet.

The agreement lasts for three years and can be extended if both sides agree, the PBOC said in a statement on its website.

The agreement aims to strengthen bilateral financial cooperation, promote trade and investment and jointly maintain regional financial stability, the statement said.