Today, the Reserve Bank of Australia signed a bilateral local currency swap agreement with theBank of Korea. The agreement allows for the exchange of local currencies between the two central banks of up to A$5 billion or KRW 5 trillion.
The effective period of the facility will be three years, and could be extended by mutual consent of both sides. This agreement is designed to promote bilateral trade for the economic development of the two countries.
In particular, the agreement will ensure that trade between the two countries can continue to be settled in local currency even in times of financial stress. The agreement can also be used for other, mutually agreed, purposes. This agreement was signed today by Governor Choongsoo Kim and Governor Glenn Stevens in Sydney.