China, South Korea discuss $30bn currency swap

South Korea is in negotiation with China for a currency swap worth up to US$30 billion to help it protect against the ongoing global financial crisis, the AFP reported, citing a report by Korean news agency Yonhap. The proposal would expand the two countries’ current agreement for a swap of US$4 billion of their respective currencies. Officials from both countries have not confirmed a change in the amount. South Korea’s foreign reserves fell in October as the government intervened to prop up the won. As of the end of last month, they totaled US$212.3 billion, down US$27.4 billion from September. China’s foreign exchange reserves exceeded US$1.9 trillion in September.