BEIJING -- China's central bank on Monday said that it has renewed a bilateral currency swap deal with the European Central Bank (ECB).

The deal has a scale of 350 billion yuan (about $49.3 billion), or 45 billion euros. It will be valid for three years, according to a statement from the People's Bank of China (PBOC).

The PBOC said the renewal would help deepen bilateral financial cooperation, facilitate trade and investment, and maintain the stability of the financial market.

A currency swap sees two parties agree to exchange a certain amount of foreign currency at a pre-determined rate, protecting against fluctuations.