KOREA NEWS S. Korea, Japan clinch US$10 bln currency swap deal

S. Korea, Japan clinch US$10 bln currency swap deal

-

- Advertisment -

SEOUL, Dec. 1 (Yonhap) — South Korea and Japan clinched a US$10 billion currency swap deal Friday, eight years after the former deal ended, amid signs of a thaw in their relations.

The Bank of Korea and the Bank of Japan signed the three-year deal based on the U.S. dollar, according to the central bank and the finance ministry.

In 2015, the two neighbors terminated the currency swap amid strained bilateral ties.

Their currency swap began in 2001 with an initial volume of $2 billion, which grew to $70 billion in 2011 in response to the global financial crisis.

However, due to the strained relationship, the amount has gradually declined, ultimately reaching $10 billion in 2015.

A currency swap is a tool meant to defend against financial turmoil by allowing a country beset by a liquidity crunch to borrow money from others with its own currency.

Currently, South Korea has currency swap arrangements with eight countries, including Canada, China and Australia. Together with a multilateral arrangement involving the 10 member states of the Association of Southeast Asian Nations, they are worth at least $138.2 billion, according to the ministry.

In June this year, Finance Minister Choo Kyung-ho and his Japanese counterpart, Shunichi Suzuki, agreed in Tokyo to resume the currency swap deal.

Finance Minister Choo Kyung-ho (2nd from R) speaks during a meeting with his Japanese counterpart, Shunichi Suzuki, in Tokyo on June 29, 2023, in this photo released by the Ministry of Economy and Finance. (PHOTO NOT FOR SALE) (Yonhap)

sam@yna.co.kr
(END)

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Kim Kardashian wears sexy knitted black dress as she joins Hollywood stars Cher, Tom Brady and Sylvester Stallone at grand opening of the new...

Kim Kardashian made a low-key arrival at the launch of the launch of Fontainebleau Las Vegas — the newest upscale resort in...

Nifty Today | Share Market Live Updates: Sensex surges 850 pts; Nifty tops 21,400; TCS, Infy, HCL Tech lead

Nifty Today | Share Market Live Updates: India's key stock indices are seeing strong gains, hitting new...

Popularity is still on the rise for the only two Paralympic exclusive sports

One sport is hundreds, possibly thousands, of years old while the other is a relative newcomer. Nevertheless, they do have...
- Advertisement -

In South Korea, more young people say marriage ‘not necessary’ as nation’s birth rates plummet

“I don’t like either scenario. I will make a living for myself and myself alone is enough,” he said.Children...

Must read

- Advertisement -

You might also likeRELATED
Recommended to you