South Korea and Japan agreed to resume a US 10 billion currency swap deal, in a new sign of improving bilateral relations between them.

Japanese news agency Kyodo reported that the two sides reached this deal after a meeting of Japanese Finance Minister Shunichi Suzuki and his South Korean counterpart Choo Kyung-ho, in the capital, Tokyo. The ministerial meeting was the first of its kind since 2016.

Japanese Finance Minister stressed that the deal would contribute to the expansion of a safety net for currency liquidity between developed nations with free market economies For his part, the South Korean Finance Minister considered that the resumption of dialogue shows that the normalization of relations between the two governments extends to economic policies and financial cooperation.

In the meeting, the two sides agreed to resume the bilateral exchange agreement, which allows them to exchange foreign currencies in case of emergency arising from financial market turmoil or any other circumstances.

The new agreement is expected to establish a supply mechanism of up to $10 billion.

It is noteworthy that the two countries concluded in 2006 an exchange agreement that allowed Japan to supply South Korea with up to 10 billion dollars. It also allowed Seoul to supply Tokyo with up to $5 billion. That agreement expired in February 2015 amid strained bilateral relations

Source: Qatar News Agency