Gyeongju: The central banks of South Korea and China have renewed their currency swap agreement for another five years, the Bank of Korea (BOK) said Monday. Under the agreement signed by the BOK and the People's Bank of China, the won-yuan swap line with a maximum value of 70 trillion won (US$49.03 billion) will be effective from Nov. 1, 2025, through Oct. 31, 2030, and can be extended by mutual consent. Its size remains the same as the previous agreement.
According to Yonhap News Agency, the renewal aims to promote bilateral trade between the two countries, maintain regional financial stability, and enhance financial and monetary cooperation between the two central banks. On Saturday, Seoul and Beijing signed a memorandum of understanding (MOU) on the swap agreement, along with six other MOUs, on the sidelines of a bilateral summit between President Lee Jae Myung and Chinese President Xi Jinping in the southeastern city of Gyeongju.