S.Korea-Australia renew $8.1 bn currency swap deal for 5 years

The currency swap has helped improve trade balance and stabilize the financial market

S.Korea-Australia renew .1 bn currency swap deal for 5 years
Mi-Hyun Jo 1
2023-02-07 11:38:14 mwise@hankyung.com
Foreign exchange

The Bank of Korea (BOK) and the Australian Central Bank have agreed to extend the valid date of the current Australian dollar/won currency swap contract for five years, from Feb. 5, 2023, to Feb. 5, 2028, BOK announced on Monday.

The currency swap, valued at 12 billion Australian dollars (US$8.1 billion), allows for the exchange of currencies in case of emergency, such as a foreign exchange crisis.

The Korea-Australia currency swap was first signed in 2014 and has been extended twice, in 2017 and 2020. This latest extension increases the contract period from three years to five years while maintaining the limit of AU$12 billion and keeping other conditions the same.

An official from the Bank of Korea stated that the two countries believe the currency swap has helped improve trade balance and stabilize the financial market and that the extension was made to keep the arrangement more stable.

Write to Mi-Hyun Jo at mwise@hankyung.com
##Korea Australia currency swap #bok australia swap #korea currency swap #bank of korea australia

BOK mulls business, financial stability this year while focusing on inflation

BOK mulls business, financial stability this year while focusing on inflation

The Bank of Korea Governor Rhee Chang-yong on Wednesday said, "We will focus on inflation this year but also closely consider tradeoffs to preserve business and financial stability."In a meeting with the Seoul Foreign Correspondents Club at the capital's Korea Press Center, he said, "Last year

Korea FX authorities, NPS agree on currency swap; won flat

Korea FX authorities, NPS agree on currency swap; won flat

A Hana Bank official organizes bundles of South Korean won and dollars at its headquarters in Seoul on Sept. 22, 2022 (Courtesy of News1) South Korea’s foreign exchange authorities and the state-run National Pension Service (NPS) agreed to open a currency swap line for the first time in 1

Experts cast doubt on S.Korea’s $2 bn currency swap deal with Turkey

Experts cast doubt on S.Korea’s $2 bn currency swap deal with Turkey

Turkish President Recep Tayyip Erdogan (Courtesy of Anadolu Agency). South Korea and Turkey have signed a $2 billion currency swap agreement to boost bilateral trade and strengthen cooperation in the financial sector, according to the Bank of Korea on Aug. 12. The deal, signed by the Bank of Ko
(* comment hide *}