SEOUL (Reuters) – The central banks of South Korea and Japan sealed on Friday a $10-billion currency swap deal following an agreement between their finance ministers, the central banks said in a joint statement.
The move comes amid improved ties between the neighbours.
Japanese Finance Minister Shunichi Suzuki and South Korea’s Choo Kyung-ho in late June held their first finance minister dialogue in seven years and agreed to revive the foreign exchange swap line that expired in 2015.
The central banks said that they believed the swap arrangement will further deepen financial cooperation between the two countries and contribute to regional and global financial stability.
The swap programme, which allows South Korea and Japan to exchange their local currencies for U.S.
dollars, will be open for three years.
(Reporting by Jihoon Lee; Editing by Ed Davies)
