Seoul, Tokyo agree to extend $10 bil. currency swap deal by another 3 years
BANGKOK — Korea has agreed with Japan to extend their $10 billion currency swap arrangement, set to expire next month, by another three years, the finance ministry said Thursday, as the two countries seek to further bolster bilateral economic ties. Finance Minister Lee Hyoung-il reached the agreement with his Japanese counterpart, Satsuki Katayama, during a meeting in Bangkok on the sidelines of…
Seoul and Tokyo have reached an agreement to extend their $10 billion currency swap arrangement by three additional years, according to the finance ministry. The deal, which was set to expire next month, will now remain in effect through November 2029. Korea and Japan have been seeking to strengthen their economic ties, and this extension is seen as a step in that direction.
The finance ministers of both countries, Lee Hyoung-il and Satsuki Katayama, signed the agreement during a meeting in Bangkok on the sidelines of the IMF and World Bank Group's 2026 Annual Meetings. The currency swap, which involves the U.S. greenback, was initially signed in December 2023 and has a size of $10 billion. A currency swap is a financial tool used to provide liquidity support during times of financial distress, allowing a country with a liquidity crunch to borrow foreign currency in exchange for its own currency.
Both countries currently maintain sufficient liquidity reserves, according to the officials present at the meeting.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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