The Bank of Korea (BOK) said on the 9th that it renewed a 10 billion Swiss franc (about 18.5 trillion won) currency swap contract with the Swiss Central Bank. The Swiss franc is one of the six key reserve currencies.
A currency swap refers to a contract in which the central banks of two countries lend to each other within a set limit and return the funds after a fixed period. The Bank of Korea (BOK) first signed a currency swap contract with the Central Bank of Switzerland in 2018, and extended it once in 2021. With this renewal, the currency swap contract maturity has been extended to Mar. 1, 2031.
The Bank of Korea (BOK) said, "Switzerland is a core reserve currency country," adding, "With the renewal of the currency swap, Korea's foreign exchange safety net available in a financial crisis has been strengthened."