Korea Extends 5 Trillion Won Currency Swap with Malaysia for 3 Years

On the 13th, Lee Chang-yong, Governor of the Bank of Korea, signed a currency swap renewal agreement with the Governor of the Central Bank of Malaysia in Basel, Switzerland.
From the left in the photo: Rashid Abdul (Datuk Shaik Abdul Rasheed Ghaffour), Governor of the Central Bank of Malaysia, and Lee Chang-yong, Governor of the Bank of Korea. (Photo by Bank of Korea)

The Bank of Korea announced on the 13th that it has signed a renewal agreement for the won-ringgit currency swap with the Central Bank of Malaysia.

A currency swap is an agreement that allows countries to deposit their own currency with the counterpart in times of emergency, such as a foreign exchange crisis, and receive the counterpart's currency or dollars in return.

The currency swap amount between the two countries is 50 trillion won and 15 billion ringgit, which is the same as the existing agreement signed in February 2020. The validity period of the currency swap agreement is three years, from today until May 12, 2027.

An official from the Bank of Korea emphasized, "The signing of the Korea-Malaysia currency swap agreement will contribute to promoting trade and strengthening financial cooperation between the two countries."