BEIJING -- The People's Bank of China (PBOC), the country's central bank, has signed bilateral currency swap agreements with more than 40 foreign central banks or monetary authorities, according to a PBOC report.

At present, 31 bilateral currency swap agreements are in force, with a total scale of about 4.16 trillion yuan ($586 billion), the report said.

Bilateral currency swaps between central banks are financing arrangements in which one country's central bank can exchange its own currency for another.

The swap funds can be used to support bilateral trade and investment activities, helping save exchange costs and reduce exchange rate risks.

The currency swap agreements China signed have played a positive role in boosting market confidence and maintaining regional and global financial stability, according to the report.