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BEIJING, Dec. 23 -- The central banks of China and Nepal have signed a supplementary agreement to expand the use of local , according to a statement on the website of the People's Bank of China(PBOC) on Tuesday.

According to the deal, the two countries' currencies can be used for settlement in both cross-border trade and ordinary trade activities.

The deal, signed during a meeting between PBOC governor Zhou Xiaochuan and his visiting counterpart Yuba Raj Khatiwada, will further facilitate bilateral trade and investment, the statement said.

The two sides also signed a memorandum of understanding on anti-money laundering and anti-terrorism cooperation.