Central banks of South Korea and Malaysia renewed a bilateral local currency swap arrangement for an additional three years, the Bank of Korea (BOK) said on Monday.

The size of the extended currency swap remains at 5 trillion won ($3.65 billion) or 15 billion Malaysian ringgit, consistent with the previous agreement.

The new agreement is effective until May 12, 2027, and can be further extended by mutual consent. A currency swap is a contract that allows countries to exchange their local currencies or dollars with each other during emergencies such as financial crises.

This aligns with the original agreement signed in October 2013, which was extended in 2017 and 2020.

KED Global