Korea has renewed a US$54 billion currency swap deal with the United Arab Emirates (UAE).
The Bank of Korea (BOK) announced on April 14 that BOK Gov. Lee Joo-yeol and Al Mansoori, governor of the Central Bank of the United Arab Emirates (UAE), signed the won-dirham currency swap agreement at the International Monetary Fund (IMF) Headquarters in Washington, D.C. on April 12.
"The agreement was signed with the aim of promoting trade between the two countries and strengthening financial cooperation," a BOK official said. The first swap agreement between the two countries was signed in October 2013 and expired in October 2016. The BOK said that the two banks had sought to extend the agreement but an accord had been delayed due to differences in laws and systems. The renewed deal will run until April 12, 2022.
Korea has currency swaps with China, Indonesia, Australia and Malaysia, followed by Canada and Switzerland, which are countries with key currencies. Korea is also taking part in the Chiang Mai Initiative Multilateralization (CMIM), a multilateral currency swap arrangement among ASEAN countries, Korea, China and Japan.