Japan and South Korea have agreed to resume, after an eight-year hiatus, a currency swap deal under which the two countries will lend each other foreign currencies during financial crises. The decision to extend their cooperation to the economy and finance is a welcome move that will promote more stable relations between the neighbors.
The agreement, made at a "finance ministerial dialogue" in Tokyo on June 29, will be in place for three years and will enable the two countries to exchange up to $10 billion. The deal was first signed in 2001 to prevent a recurrence of the 1997 Asian currency crisis, but it expired without extension in 2015 due to deteriorating relations between the two sides.
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