Japan to boost currency swap deal with S Korea
Friday, 12 December 2008
TOKYO, Dec 11 (AFP): Japan will more than double the amount of currency that it is ready to provide to South Korea in return for the won in the event of a deepening financial crisis, reports said today.
The Japanese government plans to boost the ceiling on its currency swap agreement with Seoul to 30 billion dollars from the current 13 billion dollars, the Nikkei economic daily and the Jiji Press news agency said.
China is also considering expanding its swap agreement, the reports said without citing their sources.
The three countries are expected to agree on the increased cooperation at a three-nation summit to be held Saturday in the southern Japanese province of Fukuoka, they said.
No immediate confirmation was available from Japan's finance ministry.
"We have been discussing expanding the swap agreements since the finance ministers from Japan, China and South Korea met in November but we are still in the middle of discussion," an official said.
South Korea is eager to widen currency swap deals with its neighbours after the won came under massive selling pressure, sinking to a 10-year low against the dollar last month.
Currently, Japan can extend dollar and yen funds worth up to 13 billion dollars to South Korea, while China can provide yuan funds worth up to four billion dollars to Seoul.
The Nikkei said the planned increases would be mostly for yen-won and yuan-won swaps.
The Japanese government plans to boost the ceiling on its currency swap agreement with Seoul to 30 billion dollars from the current 13 billion dollars, the Nikkei economic daily and the Jiji Press news agency said.
China is also considering expanding its swap agreement, the reports said without citing their sources.
The three countries are expected to agree on the increased cooperation at a three-nation summit to be held Saturday in the southern Japanese province of Fukuoka, they said.
No immediate confirmation was available from Japan's finance ministry.
"We have been discussing expanding the swap agreements since the finance ministers from Japan, China and South Korea met in November but we are still in the middle of discussion," an official said.
South Korea is eager to widen currency swap deals with its neighbours after the won came under massive selling pressure, sinking to a 10-year low against the dollar last month.
Currently, Japan can extend dollar and yen funds worth up to 13 billion dollars to South Korea, while China can provide yuan funds worth up to four billion dollars to Seoul.
The Nikkei said the planned increases would be mostly for yen-won and yuan-won swaps.