S. Korea welcomes standing currency swap deal with Canada

By Lim Chang-won Posted : November 16, 2017, 10:42 Updated : November 16, 2017, 10:42
 

[Aju News DB]


South Korea's top economic official hailed a standing currency swap deal with Canada saying it would provide a financial safety net as the North American country commands high international credit ratings.

The central banks of South Korea and Canada signed the agreement in Ottawa. It does not stipulate any ceilings. Canada has the world's fifth largest foreign currency reserve and maintains currency swap arrangements with the United States and other big countries.

"It is very meaningful because we have secured a strong foreign currency safety net which is available in case of a crisis," Finance Minister Kim Dong-yeon said in Seoul, adding the deal would help South Korea strengthen its overseas credibility.

In October, South Korea and China agreed to extend a currency swap deal worth 56 billion US dollars for three years. The deal, forged in 2009, has served as a safety net for an emergency because South Korean and Chinese central banks can use each other's currency to ride out a financial crisis.

 
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