(Yicai) May 14 -- Financial authorities from China and Brazil have signed several agreements to further deepen financial cooperation between the two countries.

The People's Bank of China and the Banco Central do Brasil renewed their CNY190 billion (USD26.3 billion) / BRL157 billion (USD28 billion) bilateral local currency swap agreement for five years to support the wider use of local currencies, promote bilateral trade and investment facilitation, and help maintain financial market stability, the PBOC announced yesterday.

The bilateral local currency swap agreement, which can be renewed again upon mutual consent, was first signed in 2013 with a swap fund size of CNY190 billion.

Moreover, the central banks inked a memorandum of understanding on financial strategic cooperation, aiming to deepen cooperation on all fronts. Key areas include improving the financial market investment environment, strengthening technical exchanges on financial market development, supporting financial investors in expanding investment, and promoting financial market infrastructure connectivity.

Under the MoU, the two central banks will also promote currency cooperation through liquidity provision to each other's financial markets, advance cross-border payment connectivity, and expedite the interlinking of fast payment systems and QR code payments.

Meanwhile, the relevant departments of the two central banks signed an MoU to exchange financial intelligence related to money laundering and terrorist financing to jointly fight these crimes.

The PBOC will also sign an MoU on financial strategic cooperation with the Brazilian Ministry of Finance to promote cooperation in the fields of financial markets, development financing, and international financial and monetary policy coordination.

Key aspects include promoting cooperation under the China-Brazil Cooperation Fund for the Expansion of Production Capacity for Sustainable Development, exploring other investment and financing channels, advancing the international monetary system reform, improving global financial governance, and strengthening the development financing agenda.

The signing of the above documents marks a new chapter of China-Brazil financial strategic cooperation that is mutually beneficial and pragmatic, the PBOC noted, adding that stronger financial cooperation will provide more efficient and safer financial services to businesses in both countries, create an enabling environment for the alignment of development strategies, and further consolidate and deepen the pair's comprehensive strategic partnership.

Editor: Futura Costaglione