Extended by five years until March 5, 2031
Mutual funding of 10.7 trillion won and 115 trillion rupiah
The currency swap agreement between Korea and Indonesia has been extended for another five years. The size of the currency swap remains the same as the previous agreement at 10.7 trillion won and 115 trillion rupiah.
From left: Warjiyo Perry, Governor of Bank Indonesia, and Lee Changyong, Governor of the Bank of Korea, pose for a commemorative photo on the 5th at the Bank of Korea in Jung-gu, Seoul after signing an extension of the currency swap agreement between the Bank of Korea and the Central Bank of Indonesia. Photo by the Bank of Korea. From left: Warjiyo Perry, Governor of Bank Indonesia; Lee Changyong, Governor of the Bank of Korea.
On the 5th, the Bank of Korea announced that Lee Changyong, Governor of the Bank of Korea, and Perry Warjiyo, Governor of Bank Indonesia, agreed to extend the won-rupiah currency swap agreement by five years. With this extension, the two central banks will be able to provide each other with up to 10.7 trillion won and 115 trillion rupiah in funds until March 5, 2031.
The bilateral currency swap agreement between the two countries was first signed in 2014 and subsequently extended in 2017, 2020, and 2023. The term of the latest currency swap agreement, five years, is two years longer than the previous three-year term. Upon maturity, it may be extended by mutual agreement between the two parties.
An official at the Bank of Korea said, "The currency swap agreement between the two countries was concluded with the aim of promoting bilateral trade and strengthening financial cooperation," adding, "Even during periods of high volatility in the international financial markets, it is expected to contribute to promoting intra-regional trade and ensuring financial stability by using swap funds to settle export and import payments in a stable manner."
Meanwhile, on the same day, the two central banks reviewed the progress of linking QR-based payment services between the two countries, which will be available starting in April, and pledged continued cooperation. By combining this with the local currency trading (LCT) framework, it is expected to ease the burden of currency exchange and fees and enhance payment convenience for visitors to both countries. A Bank of Korea official said, "We plan to push for an expansion into the online environment going forward," adding, "We will support the expansion of cross-border QR-based payment services to other ASEAN countries."
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