BEIJING, May 25 -- The People's Bank of China (PBOC) inked a currency swap agreement worth 22 billion yuan (3.6 billion U.S. dollars) with Chile's central bank Monday.

The deal will last for three years and can be extended if both sides agree, the PBOC said in a statement on its website.

The two central banks also signed a memorandum on the establishment of an RMB clearance arrangement in Chile.

China will grant a quota of 50 billion yuan to RMB qualified foreign institutional investors (RQFII) in the Latin American country.

"These documents mark a new step in the China-Chile financial cooperation and will facilitate the cross-border use of RMB, two-way trade and investment," said the PBOC statement.