President Park Geun-hye and Chinese leader Xi Jinping agreed at a summit held on June 27 to extend the Korea-China currency swap arrangement by three years, recognizing the positive effect that the currency swap scheme has on bilateral trade relations as well as the economic development of both nations. The existing currency swap agreement, which was signed on October 26, 2011 and was originally due to expire on October 25, 2014, will be extended to 2017. At the summit, the leaders also agreed to consider further extending the currency swap duration after 2017 and to expand the size of the currency swap if necessary. The existing won-yuan currency swap is worth 64 trillion won, or 360 billion yuan.

* Source : Ministry of Strategy and Finance and Korea Development Institute, Economic Bulletin Vol.35 No.7 (July 2013).
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