Korea to kick off bilateral currency swap agreement with China

The deal was worth US$57b.

According to BBVA Research, South Korea’s central bank announced it will begin utilizing an existing bilateral currency swap agreement with China, in order to facilitate trade settlement between the countries in both won and yuan.

Here's more from BBVA:

The pre-existing swap agreement was originally signed in December of 2008 and was worth up to US$26.3bn, then was extended in October 2011 to its current US$57bn.

Today’s announcement was made by the Bank of Korea and Korea’s Ministry of Strategy and Finance, along with the People’s Bank of China, and will further both countries’ aims to deepen liquidity in their domestic currencies through gradual liberalization, while also promoting easier trade between Asia’s largest and fourth-largest economies.