Seoul-Beijing currency swap agreement expires Tuesday

December 05, 2017

published: 2017-10-10 03:40:08한•중 통화스와프 오늘 자정 만기 The uncertainty sill hangs in the air,… as the 56-billion dollar currency swap deal between Korea and China expires today,.. after seven years in effect. Negotiations for its renewal have been ongoing for days,… but, with the deadline inching closer… still no word on whether it will be successful. Park Hee-jun reports. The currency swap agreement between the Bank of Korea and the People’s Bank of China is due to expire on Tuesday, October 10th,…and the prospects of an extension still remain uncertain. The agreement, worth 56 billion US dollars,…has been in effect for seven years since 2008,… to guard against market volatility in the wake of the global financial crisis. The deal was extended twice since it first came into effect,… with the last one coming three years ago in 2014. Possibilities of an extension remain low… due to the ongoing diplomatic row between the two countries,…over Korea’s decision to deploy a THAAD anti-missile battery.

Beijing’s government has imposed unofficial economic sanctions in response,… targeting major Korean companies, including Lotte and Hyundai Motors.