Media Release Bilateral Local Currency Swap Agreement with Bank of Korea

Today, the Reserve Bank of Australia signed a bilateral local currency swap agreement with the Bank of Korea. It follows the initial swap agreement between the two central banks that was signed in 2014 and is for a further period of three years, which could be extended by mutual consent of both sides. The new agreement allows for the exchange of local currencies between the two central banks of up to A$10 billion or KRW 9 trillion.

This agreement is designed to promote bilateral trade for the economic development of the two countries, to enhance financial stability and for other, mutually agreed, purposes. The agreement will ensure that trade between the two countries can continue to be settled in local currency even in times of financial stress.