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Central Banks of S. Korea, Japan Ink 3-Year, $10 Bln Currency Swap Deal

Written: 2023-12-01 14:18:55Updated: 2023-12-01 14:51:55

Central Banks of S. Korea, Japan Ink 3-Year, $10 Bln Currency Swap Deal

Photo : YONHAP News

South Korea and Japan agreed to a ten billion U.S. dollar currency swap deal on Friday, eight years after the last deal ended.

According to the Bank of Korea and the finance ministry, a three-year deal based on the dollar was signed with the Bank of Japan.

Currency swapping between the neighboring countries began in 2001 with an initial volume of two billion dollars, which grew to 70 billion dollars in 2011 amid the global financial crisis, but gradually declined to ten million dollars in 2015 amid worsening relations before ending entirely.

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

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