▲ Bank of Korea (BOK) Gov. Rhee Chang-yong (R) shakes hands with his Indonesian counterpart, Perry Warjiyo, during a signing ceremony for the renewal of the South Korea-Indonesia currency swap arrangement in Seoul on Feb. 5, 2026, in this photo provided by the BOK. (PHOTO NOT FOR SALE) (Yonhap)

(LEAD) S Korea-Indonesia-currency swap

(LEAD) S. Korea, Indonesia agree to renew currency swap agreement

(ATTN: ADDS details in 3rd para; CHANGES photo)

SEOUL, Feb. 5 (Yonhap) -- South Korea and Indonesia signed a renewal of their bilateral currency swap arrangement Thursday in a bid to strengthen financial cooperation and promote economic exchanges, the South Korean central bank said.

Under the agreement, the two countries can exchange up to 10.7 trillion won (US$7.32 billion), or 115 trillion Indonesian rupiah, for five years, according to the Bank of Korea (BOK).

The deal was signed in Seoul by BOK Gov. Rhee Chang-yong and his Indonesian counterpart, Perry Warjiyo.

The currency swap arrangement was first signed in March 2014 as a three-year deal and has since been extended three times.

The latest extension will remain in effect from March 6 through March 5, 2031, and may be further extended by mutual agreement, the BOK said.

"The arrangement aims to promote bilateral trade and strengthen financial cooperation between the two nations. In particular, it supports the settlement of trade transactions using local currencies, thereby contributing to regional financial stability," the BOK said in a statement.

A currency swap line is a tool designed to provide foreign currency liquidity and contain financial market stress during periods of volatility.

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