Seoul, Jakarta renew US$9 bln currency swap deal

SEOUL, March 5 (Yonhap) -- South Korea and Indonesia on Thursday renewed their local currency swap arrangement, worth over US$9 billion, designed to help promote trade between the countries and enhance their financial stability, the Bank of Korea (BOK) said.

Under the three-year arrangement, the countries may exchange up to 10.7 trillion won ($9.02 billion), or 115 trillion Indonesian rupiah, according to the BOK.

"Similar to the previous agreement, the purpose of the bilateral local currency swap arrangement is to promote bilateral trade and financial cooperation for the economic development of the two countries," it said in a statement.

"In particular, the arrangement will ensure the settlement of trade in local currency between the two countries even in times of financial stress and thus support regional financial stability," it added.

bdk@yna.co.kr
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