A Chinese employee displays euro banknotes over RMB (renminbi) yuan banknotes at a bank in Yichang city, central Chinas Hubei province, 30 May 2012. [Photo: Imagine China]

China's central bank and the European Central Bank (ECB) completed two tests on bilateral currency swaps this year, getting ready for a swap based on agreed procedures.

The tests were conducted in April and November 2015 by providing symbolic amounts of euro and renminbi liquidity, the People's Bank of China (PBOC) said in a statement.

The funds involved in the tests were ultimately allocated to some commercial banks in China and the euro zone.

In October 2013, the PBOC and the ECB signed a bilateral local currency swap arrangement for the purpose of supporting economic and trade activities and ensuring the stability of financial markets.

The arrangement will facilitate trade and investment activities between China and Europe and it marks a new achievement on the bilateral monetary and financial cooperation, the statement said.