The currency swap deal between South Korea and Indonesia has been extended for another three years.
The Ministry of Strategy and Finance said yesterday that the Bank of Korea and Indonesia’s central bank have extended the won/rupiah currency swap deal by three years to the same extent as before.
The size of currency swaps is 10.7 trillion won/115 trillion rupiah, and the period is until March 5, 2023. It can be extended under a bilateral agreement.
The currency swap between the two countries is used for trade settlement purposes. The advantage is that importers can settle their payments in their own currencies, reducing their dependence on the dollar in case of regional trade.
The ministry expected that the extension of the contract will contribute to stabilizing trade in the region at a time when the international financial market is highly volatile. Yonhap News Agency