China and South Korea have settled for an enlarged bilateral currency swap deal for $56.65 billion, The Wall Street Journal reports. The swap contract, scheduled to end on October 25, 2014, is expected to boost South Korea’s defenses against global turbulence and can be extended if both sides willingly replace an earlier swap agreement for $28.33 billion expiring in April 2012.

The move will reduce adverse effects of uncertainty in the global market on the two economies and help promote the bilateral trade for stable economic development. The two countries will also decide whether to allow converting a part of the new yuan-won swap deal into a dollar swap deal.

Click here for the story from The Wall Street Journal.