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INTERNATIONAL > East Asia & Pacific

Japan, China look to expand currency swap line to 3 tril. yen

  • August 21, 2018
  • , Kyodo News , 6:27 p.m.
  • English Press

TOKYO — The Japanese and Chinese governments are close to agreeing on an expanded currency swap line worth around 3 trillion yen ($27 billion) to prepare for a financial crisis, sources close to the matter said Tuesday.

 

The deal would mark enhanced relations between the two largest economies in Asia after their previous $3 billion swap arrangement was not extended and expired in 2013 amid deteriorating relations over a territorial row and wartime history issues.

 

Finance officials of the countries will discuss the new arrangement when meeting in Beijing as early as this month, paving the way for a final agreement to be reached at a summit between Prime Minister Shinzo Abe and Chinese President Xi Jinping possibly in October, the sources said.

 

The swap line is aimed at enabling the Japanese and Chinese central banks to exchange the yen and yuan currencies, channeling liquidity to each other in case of a financial crisis and providing a safety net for banks and companies operating in the countries.

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