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S. Korea, Japan not to extend currency swap deal

(Xinhua) Updated: 2012-10-09 11:48

SEOUL - South Korea and Japan agreed on Tuesday not to extend the bilateral currency swap arrangement, reducing the deal between the two countries to the pre-crisis level of $13 billion.

According to an e-mailed statement by Bank of Korea (BOK), the authorities from both countries agreed on the expiration of the temporary measure to expand the bilateral currency swap arrangement as of Oct 31, as scheduled.

The closing of the temporary swap expansion arrangement will reduce the bilateral swap volume from $70 billion to $13 billion, among which $3 billion?will be the won-yen swap agreement between the BOK and the Bank of Japan (BOJ) and $10 billion will be won-dollar swap arrangement under the Chiang Mai Initiative (CMI).

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