A view of South Korean and Japanese national flags hoisted ahead of the arrival of South Korea’s President Yoon Suk Yeol and his wife Kim Keon-hee, at Tokyo International Airport (Haneda Airport) in Tokyo, Japan March 16, 2023. REUTERS/Issei Kato
TOKYO – Japan and South Korea have reached an agreement to reinstate a currency swap deal worth $10 billion to strengthen the regional financial safety net. This move comes at a time of increased geopolitical risks and follows improving bilateral relations.
The currency swap deal, initially established in 2001 as a tool to mitigate financial crises, expired in 2015 due to diplomatic tensions between the two countries. However, with the current global economic uncertainties and risks, there is a renewed need to strengthen bilateral ties, according to Masato Kanda, Japan’s vice finance minister for international affairs.
Reviving the currency swap deal is part of the countries’ ambition to promote cooperation in various areas. At its peak in 2011, the deal was valued at $70 billion.
The agreement was reached between Japanese Finance Minister Shunichi Suzuki and his South Korean counterpart Choo Kyungho during a meeting in Tokyo, marking the first dialogue between the finance ministers of the two countries in seven years. The ministers also discussed the global economy, infrastructure investment, debt problems in developing countries, and the potential for broader financial cooperation.
Seoul will host the next round of finance talks in 2024.
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Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
