No plans to extend currency swap deal with S. Korea: Japanese media
ReutersTOKYO -- Japan has decided not to extend a currency swap deal with South Korea after it expires at the end of this month unless Seoul seeks an extension, Japanese media reported on Wednesday.
October 5, 2012, 3:14 pm TWN
The decision comes as Tokyo's ties with Seoul frayed badly after President Lee Myung-bak visited a set of islands in August claimed by both countries and located about midway between them, known as Takeshima in Japan and Dokdo in Korea.
The government will make a final decision later this month although South Korea has not asked for an extension so far, the Nikkei business daily reported, citing a Japanese official.
The two countries expanded their currency swap arrangements over five-fold to US$70 billion in October 2011, citing the need for pre-emptive arrangements amid global economic uncertainty.
Expiration means that the total swap arrangements would be reduced to US$13 billion as before from November.