Seoul Signs New Currency Swap Deal with Abu Dhabi

  • By Kim Tae-geun

    April 15, 2019 12:32

    The Bank of Korea Saturday signed a new US$5.4 billion currency swap deal with the Central Bank of the UAE.

    The two countries first concluded a currency swap deal in 2013, but renewal negotiations dragged due to differences in the two countries' legal systems past its expiry in 2016, a BOK spokesman said.

    They finally signed the new deal at this year's International Monetary Fund meeting in Washington over the weekends.

    A currency swap is an off-balance sheet transaction where the central banks of two countries pledge to exchange money at a fixed rate in a crisis. The total worth of currency swaps Seoul has signed with foreign countries now surpasses $132.8 billion.

    The deal with the UAE will expire on April 12, 2022 but can be extended by mutual agreement.

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