China, S. Korea to Boost Use of Local Currencies in Trade
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South Korea said it agreed with China to allow banks in both countries to borrow funds from an existing swap arrangement to encourage trade settlement in local currencies.
A 64 trillion won ($59 billion) swap line will be made available for loans to allow companies in both countries to settle deals in the won and yuan, according to a statement today from the Finance Ministry and the Bank of Korea. The system is scheduled to start later this month, it said.