'Korea, China and Japan trilateral currency swap' foreign media report: Bank of Korea, "We have not discussed it"

In response to a Hong Kong media report that the People's Bank of China is pursuing a trilateral currency swap with the Bank of Korea and the Bank of Japan, the Bank of Korea said, "We have not discussed it."

A Bank of Korea official told The Korea Economic Daily in a phone call on the 22nd, "There was no discussion among the three countries (about a currency swap)." Another official even described the Hong Kong outlet's report as a 'false report.'

The Hong Kong South China Morning Post (SCMP) reported, citing anonymous sources, that Pan Gongsheng, governor of the People's Bank of China (PBOC), Lee Chang-yong, governor of the Bank of Korea, and Kazuo Ueda, governor of the Bank of Japan, discussed the issue of concluding a trilateral currency swap among the three countries at last week's International Monetary Fund (IMF) annual meetings in Washington.

A Bank of Korea official flatly said that, including last week's IMF annual meetings, there had been no discussion of a trilateral currency swap at any occasion. However, the official added that discussions continue regarding improvements to the Chiang Mai Initiative Multilateralization (CMIM), the multilateral currency swap framework established among Korea, China, Japan and ASEAN countries.

Meanwhile, the Korea-China bilateral currency swap worth $59 billion, which had matured on the 10th of this month, is currently under discussion for renewal and is expected to be announced soon. A Bank of Korea official said, "Negotiations are progressing smoothly."

Reporter Kang Jin-kyu josep@hankyung.com