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Japan and South Korea have agreed to start negotiations for a new currency swap arrangement, to replace the one that expired in February 2015 amid deteriorating bilateral relations.
The agreement was reached here on Aug. 27 between Finance Minister Taro Aso and his South Korean counterpart, Yoo Il-ho.
The start of talks on a currency swap agreement marks a further improvement in bilateral relations between the two nations, eight months after an agreement was reached to resolve the long-standing "comfort women" issue.
In the Aug. 27 meeting, South Korea proposed reviving a currency swap arrangement, saying that it would strengthen economic cooperation between the two countries.
Japan agreed to start talks, saying that a new pact would increase the stability of financial markets in East Asia.
An arrangement would obligate the two countries to offer U.S. dollars or other currencies to each other at the time of a financial crisis such as a sharp decline in the value of a currency.
As for the time period until a new pact could be concluded, Yoo told reporters after the meeting, “Generally speaking, it will take several months.”
He said that working-level negotiations for a currency swap deal will start soon.
(THE ASAHI SHIMBUN)
