South Korea, Australia sign $5.7b currency swap deal
SEOUL (AFP) - South Korea and Australia signed on Sunday a currency swap deal worth US$4.5 billion (S$5.7 billion), Seoul's central bank said, in a move to boost trades and help curb currency swings.
The deal - signed by the countries' central bank governors - allows the two nations to purchase and repurchase each other's currency of up to 5 trillion won (S$5.9 billion), the central Bank of Korea said in a statement.
The three-year deal, which is renewable upon agreement, will allow greater flexibility for businesses to use local currencies for trade that have been commonly settled in US dollars, the statement said.
"The agreement is designed to promote bilateral trade for the economic development of the two countries," it added.