Korea, Indonesia extend currency swap for five years

Feb 06, 2026, 07:32 am

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Source: Yonhap

South Korea and Indonesia have agreed to extend their won–rupiah currency swap agreement for five years, strengthening bilateral financial cooperation and trade ties.

On Wednesday, the Ministry of Economy and Finance said the Bank of Korea and Bank Indonesia decided to extend the currency swap agreement from Feb. 6, 2026, to March 5, 2031. The deal, first signed in 2014, has now been renewed for the fourth time following extensions in 2017, 2020, and 2023.

Under the renewed agreement, the two central banks can provide mutual financial support of up to 10.7 trillion won, or 115 trillion rupiah. The contract period has been expanded from three years to five years, enhancing the stability and continuity of the framework. The agreement may be extended further upon mutual consent at maturity.

A currency swap allows countries to exchange their local currencies to secure foreign exchange liquidity, serving as a financial safety net in times of market volatility or external liquidity shortages.

The government said the agreement was concluded to promote bilateral trade and strengthen financial cooperation, adding that “even amid heightened volatility in global financial markets, the swap funds are expected to help ensure stable settlement of import and export payments, thereby contributing to regional trade promotion and financial stability.”

#South Korea #Indonesia #currency swap #Bank of Korea #Bank Indonesia