Bank of Korea and Reserve Bank of Australia Extend Currency Swap for 5 Years

[Image source=Yonhap News]

The Bank of Korea announced on the 6th that it has decided to extend the won-Australian dollar currency swap agreement with the Reserve Bank of Australia for five years.

The Korea-Australia currency swap was first established in 2014 and was extended in 2017 and 2020.

The swap size is KRW 9.6 trillion (AUD 12 billion), equivalent to approximately USD 8.1 billion.

The contract period is from today until February 5, 2028. Extension is possible upon mutual agreement at maturity.

The Bank of Korea stated, "The purpose is to promote trade between the two countries and enhance financial stability," and explained, "Both countries shared the recognition that the currency swap has contributed to trade promotion and financial market stability."