S. Korea and China renew $56 billion currency swap
THAAD doesn't block agreement
Korea JoongAng Daily reports that Beijing and Seoul have agreed to extend a multi-billion-dollar currency swap deal despite fears that the latter’s deployment of a US-made Terminal High Altitude Area Defense (THAAD) antimissile system would complicate a renewal.
The terms of the extension announced Friday reportedly follow those of the previous arrangement, with the contract set at US$56 billion for three years.
Korea’s central bank and Finance Ministry said the renewal was signed on October 10, the day the previous deal matured. But the official announcement was said to have been delayed because of “technical issues.”
A seeming delay in striking a deal had been attributed by some to China’s displeasure over Seoul’s deployment of THAAD units to counter a nuke threat from Pyongyang. China has officially opposed the move and has responded by restricting trade and other business activities between the two countries.