The People's Bank of China. (Photo: Sipa)

BEIJING -- The People's Bank of China (PBOC), China's central bank, and the Bank of Korea, the central bank of the Republic of Korea, agreed to renew their bilateral currency swap deal and expand the size to 400 billion yuan (about $60 billion), or 70 trillion won, from the previous volume of 360 billion yuan.

The agreement will be valid for a five-year period and can be extended by mutual consent.

According to the PBOC, the currency swap extension will help stabilize the financial market and facilitate trade and investment.