China and Japan renew currency swap agreement

Zhou Xiaochuan, the governor of the People's Bank of China, and Toshihiko Fukui, the governor of the Bank of Japan, renewed their currency swap agreement in Tokyo on Thursday.

The original agreement was signed on 28 March 2002 as part of the Chiang Mai initiative, which aims to link international reserves of the ten ASEAN [Association of Southeast Asian Nations] countries with those of Japan, China and South Korea through a set of bilateral pacts in order to prevent a currency crisis.

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