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SUZHOU, Oct. 27 -- China and Singapore officially announced direct currency trading on Monday, marking another important push forward for China and Singapore's economic ties.

The announcement was made during a series of meetings between senior officials from both countries, co-chaired by Chinese Vice Premier Zhang Gaoli and Singaporean Deputy Prime Minister Teo Chee Hean in Suzhou city, Jiangsu Province in eastern China.

The meetings include the 11th meeting of China-Singapore Joint Council for Bilateral Cooperation, the 16th China-Singapore Joint Steering Council Meeting for the Suzhou Industrial Park, and the seventh China-Singapore Joint Steering Council Meeting for the Tianjin Eco-city.

The move is crucial for the formation of a direct exchange rate between the RMB and Singapore dollar. It will help reduce exchange costs for economic players and promote the use of each other' s currency in bilateral trade and investment, the People' s Bank of China said on its website Monday afternoon.

The direct trading program is not only expected to strengthen the financial cooperation between China and Singapore, but also to help the internationalization of RMB in southeast Asia and the world.

As the second largest economy, China has seen the RMB, or yuan, take on a bigger role in the international market. In late September, China allowed direct trading of the yuan against the Euro. Similar trading arrangements have also been made with the U.S. dollar, the Japanese yen, the Australian dollar, the British pound and New Zealand dollar.

Apart from financial cooperation, China and Singapore also agreed to strengthen partnership in sustainable development, culture and economic transformation. Both sides signed cooperation documents ranging from intellectual property rights and exchange programs between middle-to-senior officials in education and environmental protection.

Acknowledging the outstanding achievements of bilateral flagship cooperation projects, namely the Suzhou Industrial Park and the Tianjin Eco-City, Chinese and Singaporean officials discussed future development of the industrial park and agreed to make the eco-city project a pilot program for China' s green development.

The Suzhou Industrial Park and the Tianjin Eco-City are exemplary models in cooperation between China and Singapore. Singapore is willing to work with China to advance the two projects, Teo said.

As China and Singapore will celebrate the 25th anniversary of diplomatic ties in 2015, China is willing to enhance strategic trust and cooperation with Singapore to give bilateral ties a bigger boost, Zhang said.