Currency Swap Agreement
Korea-UAE Renews Currency Swap Agreement
The Bank of Korea and the Central Bank of the United Arab Emirates renewed a bilateral local currency swap agreement on April 13 to promote bilateral trade and financial cooperation between the two countries.
The terms and conditions of the renewed deal are identical to those of the previous agreements which allowed for the exchange of local currencies between the two central banks of up to KRW 6.1 trillion and to AED 20 billion for a period of five years[1]. The two countries initially signed the agreement in 2013 and renewed it in 2019.
Today’s renewed swap deal is to expire on April 12, 2027 and could be extended by consent from both sides.
The details of the announcement are also available on the BOK website:
http://www.bok.or.kr/eng/bbs/E0000634/view.do?nttId=10070020&menuNo=400069
[1] The former effective period for the swap deal was 3 years, but the two countries agreed to extend this period to 5 years to maintain the bilateral swap arrangement, reaffirming the swap deal’s contribution to bilateral cooperation.
Please refer to the attached pdf