China and Canada have renewed a bilateral local-currency swap agreement, extending a framework designed to support trade, investment and financial stability between the two countries.

The People's Bank of China said it has renewed the agreement with the Bank of Canada, with a swap size of 200 billion yuan. The agreement has a five-year term and can be extended by mutual consent.

Approved by China's State Council, the renewed swap line is intended to strengthen financial cooperation, promote the use of local currencies in bilateral transactions, and facilitate trade and investment, the central bank said.