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Japan, South Korea Ink Emergency Currency Swap Pact

Posted on: Friday, 24 February 2006, 18:00 CST

Tokyo, Feb. 24 (Jiji Press)--Japan and South Korea concluded a revised currency swap arrangement on Friday, enabling the mutual provision of emergency dollars in the event of a currency crisis, the two nations' currency authorities said the same day.

Under the new arrangement, Japan would provide up to 10 billion dollars in emergency funds to South Korea, while Japan would be eligible to receive a maximum of 5 billion dollars from South Korea in emergency situations.

The new currency swap pact will replace the previous, one-way arrangement that only allowed South Korea to receive up to 7 billion dollars in emergency funds from Japan.

The governors of the Bank of Japan and the Bank of Korea signed the new pact based on conditions agreed by Japanese Minister Sadakazu Tanigaki and his South Korean counterpart, Han Dock Soo, at a meeting held on Feb. 4.

Besides the new currency swap pact, the central banks of the two Asian neighbors already have an arrangement under which about 3 billion dollars' worth of yen would be transferred from Japan to South Korea and the equivalent of 3 billion dollars in won would be sent from South Korea to Japan, when necessary.END

Source: Jiji Press English News Service

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