WELLINGTON, May 19 (Xinhua) -- The People's Bank of China (PBOC) and the Reserve Bank of New Zealand (RBNZ) on Friday announced the renewal of a reciprocal currency arrangement to support the settlement of cross-border transactions between New Zealand and Chinese businesses.

The arrangement, first agreed in 2011, aims to promote bilateral trade and direct investment for economic development between the two countries, said an RBNZ statement.

The size of the swap facility is 25 billion yuan (3.44 billion U.S. dollars) and it has a three-year maturity which may be extended if both parties agree, it said.

Reserve Bank Deputy Governor Grant Spencer said the bilateral currency swap line helps facilitate the international use of the RMB and contributes to the strengthening of the China-New Zealand relationship.