Korea and Indonesia decided to extend their currency swap contract, worth 10.7 trillion won, for five years until 2031.
The Ministry of Economy and Finance and the Bank of Korea said on the 5th that they will extend the won–Indonesian rupiah currency swap contract by five more years, until Mar. 5, 2031. A currency swap is a contract in which Central Banks agree to lend their own currencies to each other for a set period. The swap amount remains the same as before at 10.7 trillion won and 115 trillion rupiah.
Korea and Indonesia first signed a currency swap in 2014 and extended the maturity in 2017, 2020 and 2023. Including Indonesia, Korea maintains currency swap contracts with 10 counterparts in total: Japan, Switzerland, United Arab Emirates (UAE), Australia, China, Canada, Türkiye, Malaysia and ASEAN+3 (the 10 Association of Southeast Asian Nations member countries plus Korea, China and Japan).
The foreign exchange authorities said, "The currency swap contract between the two countries was signed to promote mutual trade and strengthen financial cooperation," adding, "Even during periods of high volatility in the international financial market, we expect to use the swap funds to settle export and import payments stably, contributing to the promotion of intraregional trade and financial stability."