BEIJING: China's central bank has signed a bilateral currency swap agreement totaling 3.5 billion yuan ($513 million) with the Central Bank of Iceland.

The agreement has a three-year maturity and can be extended if both sides agree, according to the statement posted on the People's Bank of China's website Thursday.

The move aims to deepen financial cooperation between China and Iceland, and facilitate bilateral trade, said the statement.

China has previously signed bilateral currency swap agreements with the countries of the?Republic of Korea (ROK), Malaysia, Belarus, Indonesia and Argentina and the Hong Kong special administrative region.