On Thursday, Japan and South Korea revived a $10 billion currency exchange pact to enhance “the regional financial safety net” amid rising geopolitical concerns and strengthening relations.
The 2001 exchange pact was meant to help the two countries weather a financial crisis, but it was never implemented. Despite international difficulties, it expired in 2015.
“There’s increased need to strengthen bilateral ties as global and regional economies face major uncertainty and risks,” Japan’s vice finance minister for international affairs, Masato Kanda, told reporters.
He noted that the currency swap pact was part of their goal to develop multifaceted collaboration.
The agreement reached $70 billion in 2011.
On Thursday, Japanese Finance Minister Shunichi Suzuki and South Korean Finance Minister Choo Kyungho met in Tokyo to restart the pact. It was their first encounter in seven years.
The ministers reviewed the global economy, infrastructure investment, developing country debt, and financial cooperation between both countries.
Seoul hosts the 2024 finance negotiations.
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