Currency Swap
The bilateral currency swap agreement between South Korea and Indonesia has extended by three years.
The Ministry of Finance and Strategy and Bank of Korea (BOK) said on March 6 that it has extended the swap agreement until 2020.
BOK Governor Lee Ju-yeol and Bank Indonesia Governor Agus Martowardojo signed a renewal of the bilateral swap arrangement, allowing the two central banks to exchange their local currencies of up to 10.7 trillion won (US$925 million) or 115 trillion rupiah.
When the effective period expires after three years, it could be extended on mutual consent."The arrangement has been made to expedite the bilateral trade and strengthen the financial cooperation between the two countries,” the BOK said in its statement, adding, “It will also ensure the settlement of trade in local currency between the two countries even in times of financial stress to support regional financial stability."
With the deal, Korea's currency swap deals with foreign counterparts remain at US$122.2 billion, including those from China, United Arab Emirates, Malaysia, Australia, Indonesia and the Chiang Mai Initiative.