Japan and South Korea agreed on Thursday to revive a $10-billion currency swap deal, building on improving two-way ties to strengthen a regional financial safety net amid increased geopolitical risks.<\/p>\n
The swap deal was first agreed in 2001 as a tool to help the two countries combat a financial crisis, but it was never used and was allowed to expire in 2015 amid diplomatic tension.<\/p>\n
“There’s increased need to strengthen bilateral ties as global and regional economies face major uncertainty and risks,” Masato Kanda, Japan’s vice finance minister for international affairs, told reporters.<\/p>\n
The currency swap deal was part of the two countries’ ambition to promote co-operation, he added.<\/p>\n
At its peak in 2011, the deal was worth $70 billion.<\/p>\n
The revived deal was struck between Japanese Finance Minister Shunichi Suzuki and his South Korean counterpart Choo Kyung-ho at a meeting in Tokyo, in the first dialogue between the two nations’ finance ministers in seven years.<\/p>\n
The swap line is not intended for any immediate use, but is meaningful to solidify financial co-operation networks, Choo told reporters after the meeting, a media pool report said.<\/p>\n
“The swap line expands the sources for dollar liquidity,” Choo said.<\/p>\n
Later, South Korea’s presidential office said the deal was symbolic of improving relations, and was expected to have positive effects on financial and foreign exchange markets.<\/p>\n
The ministers also discussed the global economy, infrastructure investment and debt problems in developing countries, and broader financial co-operation.<\/p>\n
Seoul will host the next round of finance talks in 2024.<\/p>\n
Source: https:\/\/www.investing.com\/news\/forex-news\/japan-skorea-to-discuss-fx-swap-deal-in-first-finance-talks-for-7-years-3115770<\/p>\n","protected":false},"excerpt":{"rendered":"
Japan and South Korea agreed on Thursday to revive a $10-billion currency swap deal, building on improving two-way ties to strengthen a regional financial safety net amid increased geopolitical risks. The swap deal was first agreed in 2001 as a tool to help the two countries combat a financial crisis, but it was never used […]<\/p>\n","protected":false},"author":1,"featured_media":652,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-651","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpautop"],"translation":{"provider":"WPGlobus","version":"2.10.10","language":"es","enabled_languages":["en","nl","es","sv","fr"],"languages":{"en":{"title":true,"content":true,"excerpt":false},"nl":{"title":false,"content":false,"excerpt":false},"es":{"title":false,"content":false,"excerpt":false},"sv":{"title":false,"content":false,"excerpt":false},"fr":{"title":false,"content":false,"excerpt":false}}},"yoast_head":"\r\n