Korea extends currency swap with Indonesia

By Nam Hyun-woo

The Bank of Korea (BOK) said Monday that it has extended a bilateral currency swap agreement with Indonesia until 2020.

BOK Gov. Lee Ju-yeol and Bank Indonesia Gov. Agus Martowardojo signed a renewal of their bilateral swap arrangement, allowing the two central banks to exchange their local currencies of up to 10.7 trillion won ($924.32 million) or 115 trillion rupiah.

The effective period of the facility will be three years and it could be extended on mutual consent, the BOK said.

“The arrangement will also ensure the settlement of trade in local currency between the two countries even in times of financial stress to support regional financial stability,” the BOK said in its statement.

With the deal, Korea’s currency swap deals with foreign counterparts remain at $122.2 billion. Partners include China, United Arab Emirates, Malaysia, Australia, Indonesia and the Chiang Mai Initiative.