Japan to boost bilateral currency swap deal with China

Tokyo: Japan, China and South Korea agreed at the Group of 20 summit to enhance bilateral currency swap between Tokyo and Beijing to help Seoul stay afloat in the global financial crisis, Japanese media said Saturday.

A joint statement said the three nations agreed to "explore an increase in the size of bilateral currency swap arrangements" among them.

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The deal was mainly aimed at helping South Korea fend off the financial crisis since the won has faced selling pressure as foreign investors withdrew capital.

Japan can offer US dollar and yen funds worth up to $13 billion, while China can provide up to $4 billion in yuan funds to South Korea, officials said.

Finance ministers from the three nations met on the sidelines of the G20 summit in Washington Friday, comprised of leaders from 20 industrialised nations and emerging economies.

The East Asian officials also agreed to work together to develop their version of the Workshop on Macroeconomic and Financial Stability, which advises the Group of Seven industrialised nations and other developed countries.

The joint statement suggested an early agreement to discuss capital increase of the Asian Development Bank, media reports said.
Source: IANS