The Bank of Korea announced on Feb. 3 that its currency swap contract with the Central Bank of Malaysia would be extended for three years.
The size of the extended contract is five trillion won as in the case of the contract signed in February 2017. The extended contract is effective until Feb. 2, 2023 and an additional extension is possible at the date of expiration.
The Bank of Korea and the Central Bank of Malaysia signed their first currency swap contract in October 2013 and the contract was extended in January 2017.
South Korea has concluded currency swap contracts with Canada, Switzerland, China, the United Arab Emirates, Australia and Indonesia as well as Malaysia. That with Canada has an unspecified limit and the limit of the rest is US$132.8 billion. In addition, South Korea is in a multilateral currency swap contract in the Chiang Mai Initiative Multilateralization (CMIM) to be capable of withdrawing US$38.4 billion.
This year, the US$7.7 billion currency swap contract between South Korea and Australia expires this month, followed by the US$10 billion contract with Indonesia in March and the US$56 billion contract with China in October.