Japan and South Korea are set to revive a currency swap agreement after an eight-year hiatus, using their thaw in bilateral relations to further economic collaboration. The $10 billion currency swap arrangement will ensure access to the U.S. dollar in times of emergency by exchanging the yen or the won. The resumption of a currency swap line would also help enhance economic partnership between Korea and Japan.

According to Japan Trade Data Japan and South Korea are reviving their currency swap agreement, which will ensure access to the U.S. dollar in times of emergency and help enhance their economic partnership.

What Is A Currency Swap?

A currency swap is a contract between two parties to exchange interest and sometimes principal in different currencies. It is a type of interest rate derivative and one of the most liquid products in multiple currencies. It can be used to hedge against currency and interest rate risk or to access cheaper loans. The exchange rate and the repayment date are fixed at the start of the contract.

In summary, a currency swap is an agreement between two parties to exchange interest and sometimes principal in different currencies, with the exchange rate and repayment date fixed at the start of the contract. Visit us: https://www.tradeimex.in/global-trade-data