Korean, Chinese central banks sign renewed currency swap deal

President Lee Jae Myung, second from right, and Chinese President Xi Jinping, second from left, attend a signing ceremony for a currency swap agreement signed by Bank of Korea Gov. Rhee Chang-yong, right, and Chinese Ambassador to Korea Dai Bing at the Gyeongju National Museum in the southeastern city of Gyeongju, North Gyeongsang Province, Nov. 1. Yonhap

The central banks of 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 ($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.

"The renewal will promote bilateral trade between the two countries, maintain regional financial stability, and further enhance financial and monetary cooperation between the two central banks," the BOK said in a release.

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, North Gyeongsang Province.