After 8 years! Japan and South Korea Agree to Restart Currency Swap Agreement
On June 29th, according to Kyodo News Agency, the governments of Japan and South Korea held financial talks and agreed to restart the currency swap agreement. Yonhap News Agency stated that this is the resumption of a currency swap agreement between the two countries after eight years.
According to reports, South Korea's Deputy Prime Minister of Economy and Minister of Planning and Finance, Guan Qiuqing ho, held the 8th South Korea Japan Finance Ministers Meeting with Japanese Finance Minister Junichi Suzuki at the Tokyo Ministry of Finance on the afternoon of the 29th. They reached an agreement to restart the currency swap agreement for foreign currency financing during emergency periods, with a total amount of 10 billion US dollars. The agreement is valid for three years.
The South Korean Ministry of Planning and Finance believes that this move will help maintain financial stability in both countries.
According to previous reports, the Japan South Korea currency swap agreement is a bilateral emergency monetary facility aimed at responding to the financial crisis, allowing each other to exchange their domestic currencies for US dollars, providing liquidity support to each other, and helping to alleviate difficulties. The two countries signed an agreement in 2001. Kyodo News Agency reported that in 2012, the then South Korean President Lee Myung bak landed on a disputed island between South Korea and Japan, and the Japanese government expressed opposition. The agreement expired and was suspended due to issues with comfort women.