China-South Korea Forge Economic Alliances Through Currency Swap

China and South Korea enhanced economic cooperation with a new currency swap agreement worth 70 trillion won ($49.24 billion), effective for five years. The leaders also signed six MOUs, covering economic cooperation, trade, and agricultural exports, marking an effort to strengthen bilateral relations.

In a strategic move to bolster economic relations, China and South Korea have inked a significant currency swap agreement, allowing a maximum exchange of 70 trillion won ($49.24 billion) or 400 billion yuan over the next five years. This development came to light as the two nations' leaders engaged in summit talks aiming to improve bilateral ties.

The currency swap will be managed by the Bank of Korea and the People's Bank of China, maintaining the size of a similar agreement that expired in October. Alongside, six strategic memorandums of understanding were signed, promoting economic cooperation, service trade, and agricultural export initiatives between the governments.

Saturday's engagements included Chinese President Xi Jinping's first South Korea visit in 11 years, coinciding with his participation in the Asia-Pacific Economic Cooperation forum. Meanwhile, South Korea's recent won-dollar currency swap agreement with Japan symbolizes a broader move to reinforce regional economic and diplomatic relations.

(With inputs from agencies.)