Bank of Korea "Agreement to Extend Korea-China Currency Swap" (Update)

[Asia Economy Reporter Eunbyeol Kim] The Bank of Korea announced on the 8th that it has reached a practical agreement to extend the currency swap contract with the People's Bank of China. Specific details will be announced once the necessary procedures are completed.

The Korea-China currency swap agreement allows the exchange of Korean won and Chinese yuan into the counterpart's currency in emergencies. The Korea-China currency swap contract, signed on October 11, 2017, between the Bank of Korea and the People's Bank of China for approximately $56 billion, is set to expire on the 10th.

At the time of the 2017 agreement, the two countries were in conflict over the THAAD deployment, making the contract extension uncertain until the last moment. As a result, the contract signed in 2014 was terminated, and a new contract was signed on October 13, 2017 (effective from October 11), marking the final announcement of the contract extension.

This year, since practical consultations were conducted under friendly conditions between Korea and China, it was expected that there would be no major issues in extending the contract.

This content was produced with the assistance of AI translation services.