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South Korean President Lee Jae-myung and Chinese President Xi Jinping shake hands at the Gyeongju National Museum in North Gyeongsang Province on November 1, ahead of their bilateral summit. (Photo courtesy of Yonhap News) |
[Alpha Biz= Paul Lee] SEOUL, South Korea — November 3, 2025 — The Ministry of Economy and Finance (MOEF) announced on Monday that the Bank of Korea and the People’s Bank of China (PBOC) have renewed their bilateral currency swap agreement between the Korean won (KRW) and the Chinese yuan (CNY).
The renewed agreement, signed on November 1, maintains the same scale and duration as the previous contract — ₩70 trillion (equivalent to CNY 400 billion) with a five-year maturity.
The Korean government said the renewal is expected to facilitate bilateral trade settlements and enhance financial stability in the region, reinforcing monetary cooperation between the two countries.
A currency swap agreement allows the two central banks to exchange their national currencies, enabling liquidity support in times of market stress and reducing reliance on third-party currencies such as the U.S. dollar for trade settlements.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
