China, U.K. further extend currency swap deal

BEIJING, Nov. 12 (Xinhua) -- China's central bank on Friday said that it has re-extended a bilateral currency swap scheme agreement with the Bank of England.

The deal has a scale of 350 billion yuan (about 54.63 billion U.S. dollars), or 40 billion pounds. It will be valid for five years and can be further extended with mutual consent, according to a statement from the People's Bank of China (PBOC).

The PBOC said the extension would help deepen the monetary and financial cooperation between the two countries and safeguard financial stability.

A currency swap sees two parties agree to exchange a certain amount of foreign currency at a pre-determined rate, protecting against fluctuations.