Korea, Indonesia Agree to Extend Currency Swap Deal

Bank of Korea Governor Kim Choong-soo (R) and his Indonesian counterpart Agus Martowardojo pose for a photo after agreeing on a currency swap deal.

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Seoul, 07 Jumadil Aakhir 1438/06 March 2017 (MINA)  – South Korea and Indonesia have agreed to extend a currency swap deal for another three years as part of efforts to strengthen bilateral financial cooperation, the finance ministry here said Monday.

The new 11 trillion won ($9.54 billion) deal went into effect earlier in the day and expires in 2020, according to the Ministry of Strategy and Finance.

The ministry said the currency agreement is to promote bilateral trade and bolster financial cooperation between the two countries.

Currency swaps spare Bank Indonesia from using its precious foreign currency reserves to service trade or debt payments to countries it has swap deals with.

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It is designed to add additional layer of protection to the country’s currency and were implemented following the 1998 Asia financial crisis, which forced it to borrow on unfavourable terms from the IMF.  (T/RS05/RS01)

Mi’raj Islamic News Agency (MINA)

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