Japan and South Korea Extend $10 Billion Currency Swap
The arrangement preserves emergency access to dollars, though Japan had not confirmed how long the extension would last.
Key takeaways
- Japan and South Korea agreed to extend their $10 billion currency swap arrangement.
- The extension is expected to run through November 2029, but Japan had not confirmed its duration.
Japan and South Korea agreed Thursday to extend their $10 billion currency swap arrangement. The extension is expected to run through November 2029, though Japan’s Finance Ministry had not confirmed the duration on Friday.
The swap lets either country exchange its currency for dollars held in the other’s foreign exchange reserves during a shortage. The borrowed dollars must later be returned.
The extension comes as South Korea faces $350 billion in U.S. investment commitments under a tariff deal. The Japan Times reported that dollar purchases to fund the commitments could weaken the won and make imports and dollar-denominated debts more expensive.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
