South Korea and China have agreed to extend their currency swap deal, which is set to expire in October next year.
 
Finance Minister Yoo Il-ho and People’s Bank of China Governor Zhou Xiaochuan reached the agreement on the sidelines of the Inter-American Development Bank- Inter-American Investment Corporation Annual Meeting in the Bahamas on Monday.
 
The two officials also agreed to expand the scope of the deal which is currently worth 64 trillion won.
 
A currency swap deal is an agreement between parties to exchange currency with the aim of providing liquidity to a country suffering from a foreign exchange crisis.
 
South Korea and China signed their first such agreement in April 2009 with the won-yuan swap line set at 180 billion yuan. The two countries then expanded the deal’s scope to 360 billion yuan in November 2011.