SINGAPORE - The People's Bank of China (PBOC) and the Monetary Authority of Singapore (MAS) on Tuesday announced the renewal of the existing bilateral currency swap arrangement (BCSA) for a further term of three years.

The original arrangement was established in 2010 and first renewed in 2013. The new arrangement is effective as of March 7, 2016.

The BCSA is a key pillar of cooperation between PBOC and MAS to strengthen regional economic resilience and financial stability.

It aims to enhance banks' confidence in carrying out their business in the two markets, and enables both central banks to provide foreign currency liquidity to stabilise financial markets, MAS said in a statement.