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S. Korea, China extend currency swap deal

2017/10/13 11:20

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SEOUL, Oct. 13 (Yonhap) -- South Korea and China have agreed to extend their currency swap deal, the head of South Korea's central bank said.

The two sides have reached the agreement to renew their swap arrangement worth 64 trillion won (US$55 billion), Bank of Korea Gov. Lee Ju-yeol, along with Finance Minister Kim Dong-yeon, told reporters in Washington on Thursday. The two are in the U.S. capital for the meeting of G-20 finance ministers and central bank governors, as well as the annual meeting of the International Monetary Fund and the World Bank.

Bank of Korea Gov. Lee Ju-yeol (R), along with Finance Minister Kim Dong-yeon, talk to reporters in Washington on South Korea's currency swap deal with China on Oct. 12, 2017. This photo was provided by the BOK. (Yonhap) Bank of Korea Gov. Lee Ju-yeol (R), along with Finance Minister Kim Dong-yeon, talk to reporters in Washington on South Korea's currency swap deal with China on Oct. 12, 2017. This photo was provided by the BOK. (Yonhap)

The announcement came three days after the currency swap deal expired.

Some South Korean analysts had voiced concerns that the diplomatic tension between Seoul and Beijing could jeopardize the currency swap agreement.

China has taken a series of economic retaliations against South Korea, including a ban on group tours to the country, to protest Seoul's decision to station an advanced U.S. anti-missile system on its soil.

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

entropy@yna.co.kr

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