Malaysia, China extend currency swap deal

The Malaysian central bank said Saturday that it has signed an agreement with China's central bank to extend currency swap deal.

The People's Bank of China and Bank Negara Malaysia signed an agreement to renew its currency swap arrangement for a further term of three years with the size maintained at 180 billion yuan/ 90 billion ringgit, according to a statement released by Bank Negara Malaysia.

"This renewed bilateral currency swap arrangement reinforces the on-going commitment by both central banks in promoting the use of local currencies for payment settlement. The currency swap arrangement will further reinforce the economic and financial linkages as well as promote bilateral trade and investment flows between Malaysia and China," said the statement.

The original arrangement was established in 2009 and first renewed in 2012. The renewed agreement was signed by Governor of Bank Negara Malaysia, Zeti Akhtar Aziz and Governor of the People' s Bank of China, Zhou Xiaochuan in the United States.

Malaysian Prime Minister Najib Razak said earlier this week that his country is willing to promote the Chinese currency in the region, and he anticipate Malaysia becoming a major offshore Renminbi clearing center in Southeast Asia.