China's central bank on Wednesday said that it has renewed a bilateral currency swap agreement with the State Bank of Pakistan.

The total value of the agreement is 30 billion yuan (about 4.21 billion U.S. dollars), or 1.18 trillion Pakistani rupees, the People's Bank of China 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 Pakistan, expand the use of the two currencies, and promote and facilitate bilateral trade and investment, the statement said.