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South Korea-China Renew $48.9B Currency Swap Deal Amid Trade Talks

South Korea and China have renewed their massive currency swap agreement worth $48.9 billion for another five years. The deal was signed alongside several other cooperation agreements during President Xi Jinping's visit to South Korea. This renewal comes after the previous five-year agreement expired last month. The arrangement is expected to help stabilize financial markets and strengthen economic ties between the two nations.

Key Points: South Korea China Renew $48.9 Billion Currency Swap Agreement

  • Five-year extension of $48.9 billion won-yuan currency swap deal between central banks
  • Six additional MOUs signed during Xi Jinping's South Korea visit
  • Agreement aims to stabilize financial markets and boost bilateral trade
  • Part of broader economic cooperation plan covering 2026-2030 period
2 min read

South Korea, China renew $48.9 billion currency swap deal

South Korea and China extend their 70 trillion won currency swap deal for five years, stabilizing markets and boosting bilateral trade cooperation.

"The currency swap deal is expected to help stabilize financial and foreign exchange markets and promote trade between the two nations. - Presidential Office"

Seoul, Nov 1

South Korea and China signed an agreement on Saturday to renew their currency swap deal worth 70 trillion won ($48.9 billion) for another five years, the presidential office said.

The deal between the central banks of both countries was signed alongside six other memorandums of understanding (MOUs) on the sidelines of President Lee Jae Myung's summit with Chinese President Xi Jinping in the southeastern city of Gyeongju, reports Yonhap news agency.

The previous Korean won-Chinese yuan swap agreement, with the same amount and a five-year term, expired last month.

"The currency swap deal is expected to help stabilize financial and foreign exchange markets and promote trade between the two nations." the office said in a release.

The two sides also signed an MOU on strengthening exchanges and services and trade.

"It will lay the institutional foundation for economic cooperation through substantive progress in Korea-China free trade agreement negotiations on services and investment," the office said.

In addition, the two nations signed an MOU on a joint economic cooperation plan for 2026-2030, the office said, noting it would set a long-term direction for promoting mutually beneficial cooperation between the two countries.

Other agreements included bilateral cooperation to combat voice phishing and online scam crimes between police, the joint promotion of a startup partnership program and phytosanitary requirements for the export of fresh Korean persimmons to China.

Jinping departed for home following a three-day visit to South Korea where he attended a summit of the Asia-Pacific Economic Cooperation (APEC) forum.

The Chinese leader arrived in South Korea on Thursday for his first visit to the country in 11 years. The same day, he held a closely watched summit with U.S. President Donald Trump in Busan and the two sides agreed to take steps to ease the trade war between their countries.

- IANS

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Reader Comments

R
Rohit P
Good move for regional economic stability. While China strengthens ties with South Korea, India should focus on enhancing our economic partnerships with ASEAN and other friendly nations. The timing with APEC summit shows strategic planning.
A
Aditya G
$48.9 billion is massive! This kind of economic cooperation between neighbors is exactly what South Asia needs. India and China should also work on more such financial mechanisms, though border issues need resolution first. 🤝
S
Sarah B
The inclusion of combating online scams and voice phishing is particularly relevant. As digital transactions grow globally, such cooperation between nations becomes crucial. India could learn from these collaborative security measures.
M
Meera T
While economic cooperation is good, I hope South Korea maintains its strategic autonomy. The timing with Xi's first visit in 11 years suggests China's renewed focus on regional influence. India should watch these developments closely for our own strategic interests.
K
Karthik V
The persimmon export agreement shows how detailed these economic partnerships can get! India should similarly focus on expanding agricultural exports through such targeted agreements. Our mangoes and basmati rice deserve more international markets! 🥭

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