Korea, Australia renew expanded currency swap deal

Finance

Korea, Australia renew expanded currency swap deal

Published: 06 Feb. 2023, 15:32 Updated: 06 Feb. 2023, 16:11

Finance Minister Choo Kyung-ho, right, meets with his Australian counterpart Jim Chalmers at International Monetary Fund headquarters in Washington D.C. on Oct. 14, 2022. [MINISTRY OF ECONOMY AND FINANCE]

Korea and Australia renewed their currency swap deal Monday, the finance ministry and central bank said, to ensure a steady exchange of goods and services between the two countries.

The renewed five-year deal, signed by the Bank of Korea 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 ($8.1 billion).

The countries initially signed the swap deal in 2014 and had renewed it every three years.

"The two countries shared a consensus that the currency swap has promoted trade and contributed to the stability of the financial market," the finance ministry said in a release.

The finance ministry added the two countries have agreed to extend the deal by five years instead of three to maintain a stable currency swap scheme.

The latest agreement will remain effective until 2028.

Yonhap