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South Korea, China discussing currency swap extension

Friction over missile defense clouds future of Seoul's forex safety net

Won, yuan and yen notes: The top central bankers of South Korea, China and Japan will confer about debt this week.   © Reuters

SEOUL -- The Bank of Korea is in talks with its Chinese counterpart over extending their 360 billion yuan ($56 billion) currency swap deal, a critical mechanism in the event of a financial crisis, the South Korean central bank said on Wednesday.

The BOK said it wants to renew the three-year deal that expires in October but cannot guarantee it will happen, since there are two sides involved. The arrangement has been extended every three years since it was forged in 2008, amid the global financial crisis.

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