China-Japan sign three-year FX swap deal of up to $30 billion

© Reuters. Chinese Premier Li Keqiang, Japanese Prime Minister Shinzo Abe, Chinese Foreign Minister Wang Yi and Japanese Foreign Minister Taro Kono attend a signing ceremony in Beijing

TOKYO (Reuters) - Japan and China signed a bilateral currency swap arrangement on Friday aimed at enhancing the financial stability of the two countries, the Bank of Japan said.

The arrangement, which takes effect on Friday and lasts until Oct. 25, 2021, will allow the exchange of local currencies between the two central banks for up to 200 billion yuan or 3.4 trillion yen ($30 billion), the BOJ said.

China and Japan on Friday signed a broad range of agreements on strengthening bilateral ties, pledging to step up cooperation in areas from finance and trade to innovation and securities listings.

The agreements were signed during Japanese Prime Minister Shinzo Abe's visit to Beijing for the first formal Sino-Japanese summit in seven years, as Asia's two biggest economies looked to further build relations and trust against a backdrop of trade friction with the United States.