Have South Korea and China Renewed Their $48.9 Billion Currency Swap Deal?
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Synopsis
South Korea and China have renewed a significant currency swap deal valued at $48.9 billion, enhancing financial stability and trade cooperation. This pivotal agreement, signed during a summit, sets the stage for future economic collaboration and reflects a strategic partnership between the two nations.
Key Takeaways
- The currency swap deal is worth 70 trillion won ($48.9 billion).
- It is renewed for another five years.
- The agreement aims to stabilize financial markets.
- Additional MOUs were signed to enhance economic cooperation.
- This marks a significant step in Korea-China relations.
Seoul, Nov 1 (NationPress) South Korea and China have officially renewed their currency swap agreement, valued at 70 trillion won (approximately $48.9 billion), for an additional five years, as confirmed by the presidential office.
This agreement was finalized between the central banks of both nations during a summit involving President Lee Jae Myung and Chinese President Xi Jinping, held in the southeastern city of Gyeongju, according to reports from the Yonhap news agency.
The previous Korean won-Chinese yuan swap deal, which also amounted to the same value and duration, expired last month.
The presidential office stated, “This currency swap agreement is anticipated to enhance stability in the financial and foreign exchange markets and facilitate trade between the two countries.”
In addition to the swap deal, the two nations signed a memorandum of understanding (MOU) aimed at bolstering exchanges, services, and trade.
The office further noted, “This will establish a solid institutional framework for economic collaboration, promoting significant advancements in the Korea-China free trade agreement negotiations regarding services and investments.”
Moreover, both countries agreed on an MOU concerning a joint economic cooperation strategy for the years 2026-2030, outlining a long-term vision for mutually beneficial collaboration.
Additional agreements included initiatives for bilateral cooperation to tackle voice phishing and online scams, the joint promotion of a startup partnership program, and phytosanitary requirements for exporting fresh Korean persimmons to China.
Following a three-day visit to South Korea, where he participated in the Asia-Pacific Economic Cooperation (APEC) summit, President Jinping returned to China.
This visit marked his first trip to South Korea in 11 years, coinciding with a pivotal summit with U.S. President Donald Trump in Busan, where both leaders discussed measures to alleviate the ongoing trade war.
Point of View
It's essential to recognize the positive implications of the renewed currency swap deal between South Korea and China. This agreement not only strengthens bilateral financial stability but also lays the groundwork for deeper economic cooperation, which is crucial for both nations in today's global economic landscape.
NationPress
02/11/2025
Frequently Asked Questions
What is the value of the renewed currency swap deal?
The renewed currency swap deal between South Korea and China is valued at 70 trillion won, which is approximately $48.9 billion.
How long is the renewed currency swap deal effective?
The renewed currency swap deal is effective for an additional five years.
What are the expected benefits of the currency swap deal?
The agreement is expected to stabilize financial and foreign exchange markets and promote trade between South Korea and China.
Where was the currency swap deal signed?
The currency swap deal was signed in Gyeongju during a summit between South Korean President Lee Jae Myung and Chinese President Xi Jinping.
What additional agreements were signed alongside the swap deal?
Additional agreements include MOUs on strengthening exchanges, services, and trade, as well as initiatives for economic cooperation and combating online scams.
