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S. Korea, Australia sign new, expanded currency swap deal

All News 14:09 February 06, 2020

SEOUL, Feb. 6 (Yonhap) -- South Korea and Australia renewed their currency swap deal Thursday to ensure a steady exchange of goods and services between the two countries, Seoul's central bank said.

The renewed agreement, signed by the Bank of Korea (BOK) and the Reserve Bank of Australia, allows for the exchange of local currencies between the two countries of up to 12 billion Australian dollars or 9.6 trillion won, worth about US$8 billion.

The amount marked an increase from A$10 billion or 9 trillion won under the previous deal.

The countries initially signed the swap deal in 2014 and have since renewed it every three years. The latest agreement will remain effective until 2023.

"This agreement is designed to promote bilateral trade for the economic development of the two countries, to enhance financial stability and for other, mutually agreed, purposes," the BOK said in a statement.

"The agreement will ensure that trade between the two countries can continue to be settled in local currency even in times of financial stress," it added.

bdk@yna.co.kr
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