South Korea signs $5.8b currency swap deal with Malaysia

SEOUL (REUTERS) - South Korea's central bank said on Sunday it had signed a bilateral currency swap deal with Malaysia valid for three years and worth up to US$4.7 billion (S$5.8 billion) to boost trade and financial cooperation between the two countries.

The arrangement lets either country swap 5.0 trillion Korean won (S$5.8 billion) won for RM15 billion (S$5.8 billion), or vice versa. The Bank of Korea (BOK) said in a statement the agreement expires in three years, but can be extended if needed.

Sunday's currency swap was the third swap-pact signed this month after a US$5.4 billion won-dirham agreement with the United Arab Emirates and a won-rupiah pact with the Indonesian central bank last week valued at up to US$10 billion.

The agreement with Malaysia was reached during Bank of Korea Governor Kim Choong Soo's visit to Kuala Lumpur to mark the 30th anniversary of the meeting of Southeast Asian central banks.