The People's Bank of China (PBOC), the country's central bank, has signed a bilateral currency swap agreement with the Bank of Mauritius, the PBOC said on Wednesday.

The total value of the agreement is 2 billion yuan (about 281.1 million U.S. dollars), or 13 billion Mauritian rupees, the PBOC said in a statement on its website.

The agreement is valid for three years and can be renewed upon mutual consent, according to the statement.

The currency swap arrangement will strengthen financial cooperation between China and Mauritius, expand the use of the two currencies, and promote and facilitate bilateral trade and investment, the statement said.