The Bank of Korea on March 6 said it agreed with Bank Indonesia to extend their bilateral currency swap through March 5, 2026. (Korea.net DB)
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KRW 10T currency swap with Indonesia extended 3 yearsBy Park Hye Ri
Korea and Indonesia have extended a bilateral currency swap for three more years.
The Bank of Korea (BOK) on March 6 said it agreed with Bank Indonesia to extend the expiration date of their KRW-IDR currency arrangement to March 5, 2026.
A currency swap has a country pledging to entrust the other with its own currency and borrow the other nation’s currency or USD in an emergency like a foreign exchange crisis. This arrangement can be extended through mutual agreement before the expiration date.
Thanks to the extension, the two central banks can provide financial support to each other worth KRW 10.7 trillion, or IDR 115 trillion.
Both sides concluded their first swap in 2014 to boost bilateral exchange and financial cooperation, extending it in 2017 and 2020.
“Despite times of high volatility on the global financial market, we expect that stable payments of export and import prices utilizing the swap fund will contribute to acceleration of regional trade and financial stability,” the BOK said.
hrhr@korea.kr
