SEOUL, March 6 — South Korea and Indonesia on Monday renewed their currency swap arrangement, worth over US$8 billion, designed to help promote trade between the countries and enhance their financial stability, the Bank of Korea (BOK) said, reported Yonhap.
Under the three-year arrangement, the countries may exchange up to 10.7 trillion won (US$8.26 billion), or 115 trillion Indonesian rupiah, until March 5, 2026, according to the BOK.
“The arrangement will support the settlement of trade in local currency between the two countries even in times of financial stress and thus support regional financial stability,” the BOK and Bank Indonesia said in a joint press release posted on the BOK’s website.
The swap deal was first inked in 2014 and renewed in 2017 and 2020.
The local currency swap is largely aimed at preparing the countries against liquidity crunches by allowing them to borrow money with their own currencies.
South Korea also has currency swap arrangements with seven other countries: China, Canada, Switzerland, Australia, Turkey, the United Arab Emirates and Malaysia.
— Bernama
