Currency Swap with Australia
Deputy Prime Minister and Minister of Strategy and Finance Hyun Oh-seok announced on October 21 that the Korean government is in negotiations with Australia for a currency swap agreement.
He participated in the groundbreaking ceremony for OCI’s plant in Gunsan City, North Jeolla Province that day, and met news reporters to say so. “We are mulling over signing currency swap deals with countries rich with natural resources, and Australia is one of them,” he mentioned, adding, “We are planning to conclude the agreement on an Australian dollar-won basis, because Australia is a key-currency country.”
Recently, Korea has signed such deals in the same manner with resource-rich countries like Indonesia, the United Arab Emirates (UAE), and Malaysia. The new agreement is expected to not only increase the presence of the won as a currency of trade settlement, but also contribute to the safety of the foreign exchange market.
“Still, the discussions are at an early stage as far as I know, and I guess that at least some time will be needed until the two regions’ mutually consent,” he concluded.