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South Korea, China extend currency swap deal

Korea and China have agreed to extend their currency swap deal... that's set to expire next year.
This is expected to not only help Korea get better prepared for possible future financial crises... but it's being seen as yet another bilateral move that could also help strengthen its relationship with China.
Our Kim Jung Soo has the details. Korea and China agreed on Monday to extend their 2011 currency swap deal that's scheduled to end in October 2017.
The current value of the swap deal, which sits at 60 billion dollars, is also subject to a possible expansion.
The agreement was finalized by Finance Minister Yoo Il-ho and People's Bank of China Governor Zhou Xiaochuan on the sidelines of the Inter-American Development Bank meeting in the Bahamas.
The currency swap deal between the two nations first began in 2009 and was previously extended in 2011.
Under the deal, when Korea depletes its foreign exchange reserves, which currently sits at 365 billion U.S. dollars... it can sell a specified quantity of Korean Won to China's central bank.
In return, Korea can receive an equal amount of Chinese Renminbi at the prevailing market exchange rate.
Later, at a designated time, the payments are returned according to a fixed exchange rate.

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South Korea, China extend currency swap deal