Japan, South Korea to expand currency swap deal
12/12/2008 17:22
The Bank of Japan said today it has agreed with the Bank of Korea, the
central bank of South Korea, to expand their currency swap deal to US$20 billion
from the current 3 billion to deal with global financial turmoil.
The deal
will allow the two countries to raise the limit of currency swap to US$20
billion in a temporary arrangement through April 2009.
The move comes as the
won has sharply depreciated against the US dollar, the yen and other major
currencies amid the financial turmoil.
The central banks of China and South
Korea also signed an agreement today to expand their currency swap, which
involved 180 billion yuan (US$26.3 billion), China's central bank said.
The
latest arrangement is intended to help solve liquidity problems in South
Korea.
The money swap deals by three central banks announcement preceded the
summit meeting between the leaders of Japan, South Korea and China scheduled
tomorrow in the western Japanese city of Dazaifu, Fukuoka Prefecture, during
which their leaders are expected to discuss measures against the global
financial crisis.
Xinhua
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