S.Korea-Indonesia central banks renew currency swap agreement

Central banks of South Korea and Indonesia renewed a bilateral local currency swap arrangement to keep supporting trade and financial cooperation for the economic development of Asia’s fourth-largest economy and Southeast Asia’s top market.

The Bank of Korea and Bank Indonesia on Monday said they signed the deal to allow for the exchange of local currencies between the two central banks of up to 10.7 trillion Korean won ($8.3 billion) or 115 trillion Indonesian rupiah ($7.5 billion).

“The arrangement will support the settlement of trade in local currency between the two countries even in times of financial stress and thus support regional financial stability,” the two central banks said in a statement.

The new agreement will be in effect until March 5, 2026, and it will be extended upon mutual consent. The arrangement was first established in March 2014 and has been extended several times since.

Write to Mi-Hyun Jo at mwise@hankyung.com
 

Jongwoo Cheon edited this article.