BEIJING - China's central bank extended a currency swap agreement with the central bank of the United Arab Emirates (UAE) on Monday, according to the People's Bank of China (PBOC).

The currency swap agreement, which is worth 35 billion yuan ($5.4 billion) and will last three years, allows the two sides to exchange payments in one currency for equivalent amounts in the other to facilitate bilateral trade settlements and provide liquidity support to financial markets.

The two parties also signed a memorandum of cooperation on?renminbi clearing in the UAE and agreed on expanding the?renminbi Qualified Foreign Institutional Investor (RQFII) program to the UAE at a quota of 50 billion yuan ($7.75 billion)

The agreements will facilitate trade and investment activities between China and the UAE, marking a new achievement in bilateral monetary and financial cooperation, the PBOC said.