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The Bank of Japan and the Bank of Korea Announce an Increase in the Size of the Yen-Won Swap Arrangement

December 12, 2008
Bank of Japan

The Bank of Japan has reached an agreement with the Bank of Korea on an increase in the maximum amount of the bilateral yen-won swap arrangement from three billion US dollars equivalent to twenty billion US dollars equivalent.  This increase will be effective until the end of April 2009.

The bilateral yen-won swap arrangement between the two central banks, which is designed for a non-crisis situation, had been made effective in May 2005, with a view to stabilizing regional financial markets through supplying short-term liquidity.

The Bank of Japan believes that this action will mitigate adverse influences of the global financial turmoil on the two sound and well-managed economies and contribute to securing stability in regional financial markets.