The Ministry of Economy and Finance / Yonhap
Korea and Switzerland have agreed to extend their bilateral currency swap agreement, Seoul's finance ministry said Monday.
The 18.5 trillion-won ($12.4 billion) currency swap will be extended for another five years until March 1, 2031, according to the Ministry of Economy and Finance.
The bilateral swap agreement was first signed in 2018 and extended in 2021, making this the second renewal.
"Given that Switzerland issues a major global reserve currency, the renewal of the currency swap will further strengthen South Korea's foreign exchange safety net, which can be utilized during financial crises," the ministry said.
A currency swap is a tool used to defend against financial turmoil, allowing a country facing a liquidity crunch to borrow funds from another country using its own currency.
Source: Korea Times News
