The People's Bank of China and the Saudi Central Bank have signed a bilateral currency swap agreement, China's central bank said Monday.

The total value of the currency swap agreement is 50 billion yuan (about $6.98 billion), or 26 billion Saudi riyals, the central bank said in a statement on its website.

The agreement is valid for three years and can be renewed upon mutual consent, according to the statement.

The currency swap arrangement will help strengthen financial cooperation between China and Saudi Arabia, expand the use of the two countries' currencies, and promote bilateral trade and investment facilitation, the statement added.