BEIJING — The People's Bank of China (PBOC) and the Bank of Japan have agreed to renew their bilateral currency-swap deal with a size of 200 billion yuan (about $31.3 billion), or 3.4 trillion Japanese yen.

The agreement will be valid for a three-year period and can be extended by mutual consent, China's central bank said on Oct 25.

The currency-swap extension will help stabilize the financial markets of the two countries and facilitate bilateral economic and financial exchanges, according to the PBOC.

In October 2018, the PBOC inked a bilateral currency-swap agreement with its counterpart in Japan, allowing the two sides to swap a total of 200 billion yuan for 3.4 trillion yen, and vice versa.