Legal Issues In Northeast Asia Currency Swap

Northeast Asian currency swap practice increased year by year in recent years. It is a financial instrument which stables Northeast Asian regional economy. With more Northeast Asian currency swap arrangements, studying Northeast Asian currency swap legal issues has great theoretical and practical significance. The paper aims to analysis the problem to reinforce the domestic research and introduce a new perspective of the study of the swap.This paper analyzed the law principles of currency and currency swap. First, the concept of domestic law and international law definition of currency was briefly explained. Principles of the contract, which were agreement subject eligibility and specific and the equality of rights and obligations between the parties, were analysed. Law is to protect and guide a means of behavior. The paper discussed the feasibility of Northeast Asian currency swap based on the domestic law and international law and analyzed the basic principles which Northeast Asian currency swap should follow. At the same time, normative analysis method was applied to analyse the GATT agreement, the WTO rules and the international monetary fund agreement.Second, tabulate signed currency swap agreements with China as the center in recent years and the innovation lies in the next 17 years GDP reckoning diagrams of the six countries in Northeast Asia. Northeast Asian currency swaps are not only the exchange of two countries but also going to promote the development of multilateral or regional agreement.Finally, through the study conclusions were drawn that Northeast Asian regional swaps has its proper coordination of domestic law and international law basis and Northeast Asian currency swap arrangements will continue to increase. Currency swaps can be policy guided short-termly, but the legal maintenance is definitely needed for a long time. And the cooperation of treaties, policies, institution should be the guarantee in Northeast Asia currency swaps. To establish a framework agreement and adjust the policy and institution arrangement, our country should play a dominant role in the construction of Northeast Asia free trade area.