BEIJING, Dec. 11 -- China's central bank announced on Monday that it has authorized the Bank of China (BOC) Phnom Penh Branch to be the clearing bank for renminbi (RMB) business in Cambodia.

The People's Bank of China (PBOC), the central bank, made the decision in accordance with a memorandum of understanding it signed with the National Bank of Cambodia on Nov. 21 this year.

The PBOC also said Monday that it has signed a memorandum of understanding on establishing yuan clearing arrangements in Serbia.

The move will help enterprises and financial institutions of the two countries to use yuan for cross-border transactions and further promote bilateral trade and investment facilitation, it added.