China and Brazil have signed a currency swap deal, designed to safeguard against future global financial crises.

 

The pact, first announced last year, will allow their central banks to swap local currencies worth up to CNY 190bn or 60bn reais (USD 30bn; GBP 20bn).

 

Officials said this will ensure smooth bilateral trade, regardless of global financial conditions.

 

Along with being the world's second-largest economy, China is also Brazil's biggest trading partner.

 

"If there were shocks to the global financial market, with credit running short, we'd have credit from our biggest international partner, so there would be no interruption of trade," said Guido Mantega, Brazil's economy minister.

 

The agreement was signed on the sidelines of the fifth Brics (Brazil, Russia, India, China and South Africa) summit being held in Durban, South Africa.

 

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