S. Korea-China Currency Swap Deal Expires

Write : 2017-10-11 11:31:34 Update : 2017-10-11 11:38:08

S. Korea-China Currency Swap Deal Expires

Anchor: South Korea and China’s 56 billion dollar currency swap agreement has expired. The two sides failed to renew the deal amid a diplomatic dispute over Seoul’s agreement to allow the U.S. to deploy an advanced missile defense system to South Korea.
Our Park Jong-hong has the details.
 
Report: South Korea and China couldn't reach an agreement to extend their currency swap deal and the eight-year-old pact came to an end.

The Bank of Korea said Wednesday that working-level talks were held until Tuesday when the deal expired at midnight. 

Before it expired, Deputy Prime Minister for Economic Affairs and Finance Minister Kim Dong-yeon indicated talks could continue at a later date. He told reporters on Tuesday that China hopes to see the Chinese yuan go global and become a key currency. 
 
The currency swap deal between South Korea and China was first signed in 2009 at 26 billion U.S. dollars. The amount was expanded to 56 billion dollars in 2011 and the expiration was extended by three years. The deal is largely intended to serve as a buffer against possible financial crises to secure liquidity. 
 
Minister Kim said the country has more than 380 billion dollars in foreign exchange reserves and the market is quite stable and on a steady upward trend. He implied there is little cause for concern.
 
It’s widely believed that the deal wasn’t extended because of Seoul agreeing to the U.S. deployment of the anti-missile battery THAAD. Beijing has intensely protested the system, which it believes could be used to spy on its territory.
 
There has been a series of boycotts on South Korean goods and services that led to the closure of Lotte Mart stores in China. It was revealed on Wednesday, however, that South Korea did not raise issue with China's trade barriers against South Korean companies during a World Trade Organization meeting earlier this month.
 
Sources say South Korean officials did not protest against Beijing’s retaliatory actions in the tourism and retail industry for fear that would stoke greater tension with China.
Park Jong-hong KBS World Radio News.

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