BEIJING - China's central bank signed a currency swap deal worth 1.5 billion yuan ($228 million) with its Serbian counterpart on Friday to boost bilateral economic cooperation.

The pact, inked with the National Bank of Serbia, will last three years and can be extended if the two sides agree, the People's Bank of China (PBOC) announced.

A currency swap deal allows two institutions to exchange payments in one currency for equivalent amounts in the other to facilitate bilateral trade settlements and provide liquidity support to financial markets.