China Eyes Trilateral Currency Swap With Japan and South Korea

China, Japan and South Korea are exploring a trilateral currency swap as existing Yuan, Won, and Yen lines near expiry.
China, Japan and South Korea are exploring a trilateral currency swap as existing Yuan, Won, and Yen lines near expiry. (Photo: STR / AFP)

China is talking with Japan and South Korea about a trilateral currency swap, a person familiar with the matter said. The aim is to build a stronger regional financial backstop as U.S. tariff actions raise trade costs.

According to the person, Pan Gongsheng, who leads the China’s central bank, People’s Bank of China, discussed the idea in mid-October 2025 in Washington with Rhee Chang-yong, who leads South Korea’s central bank, Bank of Korea, and Kazuo Ueda, who leads the Japan’s central bank, Bank of Japan. 

  • Get a daily email packed with the latest news and analysis from Africa, Asia, and across the Global South.
  • Read exclusive insights on the key trends shaping China’s relations across the Global South.
  • Full access to the News Feed that provides daily updates on Chinese engagement in the Global South.

China, Africa and the Global South... find out what’s happening.

Subscribe today for unlimited access.

OR

Already a subscriber? Log in Click Here to Learn More
by Edwin Shri Bimo

Most Read

1
Developing Countries’ Debt Servicing Costs to China Are Significant, but Nowhere Near as Much as Other Creditors
2 Chinese Military Fans Discuss Why Indonesia Bought Rafale Instead of J-10C
3 From J-10C to Kaan? Indonesia’s Fighter Jet Deal With Turkey Shocks Chinese Military Fans
4
Uncertainty Roils Minerals Markets
5
Indonesia Goes Nuclear, Taps China and Russia for Modular Reactors
6
Chinese Cargo Planes Secretly Ferrying Supplies to Iran, Claim Online Sleuths

You Might Like

Asian Finance Ministers Outline a Joint Response to Trump Administration’s Trade Pressure

As U.S. President Donald Trump dominated headlines with the announcement of further tariffs (this time on movies), Asian finance ministers quietly launched the continent’s newest set of strategies to lessen its exposure to the ...
China-Indonesia launch Yuan–Rupiah local-currency settlements and a QR payments link; transactions hit $6.23b in Jan–Jul 2025.

China–Indonesia Launch Yuan–Rupiah Settlements, QR Payments

China and Indonesia on Thursday launched a local-currency settlement framework for bilateral transactions. Both countries also began a two-way trial of cross-border QR code payments. The central bank chiefs called the steps ...

Biden’s IPEF Plan Gets Lukewarm Reaction in Asia

U.S. President Joe Biden is in Asia for his first official presidential visit to South Korea and Japan. One of the main goals of the trip, which kicked off on Friday, is ...

China Still Keen to Join Pan-Pacific Trade Pact and Expects All 11 Members to Support Its Bid, Says Vice Minister

One of China’s top trade negotiators said Beijing is still committed to joining the pan-Pacific trade pact known as CPTPP (formerly known as the Trans-Pacific Partnership) even though the odds of admission in ...

What is The China-Global South Project?

Independent

The China-Global South Project is passionately independent, non-partisan and does not advocate for any country, company or culture.

News

A carefully curated selection of the day’s most important China-Global South stories. Updated 24 hours a day by human editors. No bots, no algorithms.

Analysis

Diverse, often unconventional insights from scholars, analysts, journalists and a variety of stakeholders in the China-Global South discourse.

Networking

A unique professional network of China-Africa scholars, analysts, journalists and other practioners from around the world.

More about CGSP