South Korea and China have agreed to continue
their currency swap deal. Despite concerns surrounding diplomatic tension
between the two nations,… an agreement was reached to extend the previous currency swap
deal until 2020. Lee Unshin reports. South Korea and China’s 56-billion U.S. dollar
currency swap deal is here to stay. After a few days of ‘will they or won’t they’
following the agreement’s expiration earlier this week,… Bank of Korea Governor Lee Ju-yeol and Finance
Minister Kim Dong-yeon confirmed the extension of the deal at the G20 Finance Ministers and
Central Bank Governors meeting Washington D.C. on Thursday evening. The currency swap allows Seoul and Beijing
to use their currency to buy U.S. dollars from one another at a pre-determined rate,
in cases of financial crisis. The deal was initially signed back in 2009
for a 26 billion dollar currency swap. After being expanded to the current 56 billion
dollars in 2011, the deal was extended in 2014,… and this latest extension secures
the deal for another 3 years. Korea also has currency swaps with other global
partners such as Australia, Indonesia and Malaysia. But the agreement between Seoul and Beijing
accounts for some 46-percent of the total value of currency swap deals Korea has with
foreign countries. Market experts commented that the deal’s extension
will bring much economic benefit to both sides,… and pundits expressed hopes that this may
help thaw diplomatic tensions between the two over Korea’s decision to install the U.S.
anti-missile system THAAD. Lee Unshin Arirang News.