Monetary regulators from China and Russia recently agreed to a draft document on national currency swaps that is currently at the approval procedures stage, according to Russia's central bank.

The volume of national currency swaps, as well as the the time of their launch, is dependent on the demand for the instrument.

The swap agreement is expected to boost the potential for the use of Russian rubles and Chinese yuan in trade settlements, with the agreement serving as an additional instrument to ensure international financial stability while offering a possibility to obtain liquidity in critical situations.

"The agreement will stimulate further development of direct trade in yuans and rubles on the domestic foreign exchange markets of Russia and China," the Central Bank of Russia said.

The idea for the currency swaps was put forward by Russian President Vladimir Putin at a meeting in Shanghai in May as a means of creating new mechanisms to manage Russia's and China's foreign exchange reserves and make the ruble and yuan more resilient.