Bank of Korea (BOK) governor Rhee Chang-yong (right) shakes hands with Swiss National Bank (SNB) chairman Martin Schlegel at the Bank for International Settlements (BIS) in Basel, Switzerland on March 9, 2026. Courtesy of the Bank of Korea
SEOUL, March 9 (AJP) - South Korea has agreed with Switzerland to extend their currency swap deal by five years, financial authorities here said on Monday.
According to the Bank of Korea (BOK), the bilateral currency swap deal will now run until March 1, 2031, allowing the two countries to swap up to 10 billion Swiss francs or about 18.5 trillion won (US$12.4 billion).
A currency swap allows one country to deposit its own currency in another country's reserves in return for the other country's currency in case of a liquidity shortage.
South Korea and Switzerland first signed the deal in 2018 and extended it in 2021, with the latest renewal expected to further strengthen financial cooperation and support market stability.
South Korea has similar deals with about 10 countries including Australia, Canada, China, Indonesia, Japan and Malaysia.
"The renewal will bolster South Korea's foreign exchange reserves, given Switzerland's status as a key reserve-currency country, providing an additional safety net against potential financial crises," a BOK official said.
According to the Bank of Korea (BOK), the bilateral currency swap deal will now run until March 1, 2031, allowing the two countries to swap up to 10 billion Swiss francs or about 18.5 trillion won (US$12.4 billion).
A currency swap allows one country to deposit its own currency in another country's reserves in return for the other country's currency in case of a liquidity shortage.
South Korea and Switzerland first signed the deal in 2018 and extended it in 2021, with the latest renewal expected to further strengthen financial cooperation and support market stability.
South Korea has similar deals with about 10 countries including Australia, Canada, China, Indonesia, Japan and Malaysia.
"The renewal will bolster South Korea's foreign exchange reserves, given Switzerland's status as a key reserve-currency country, providing an additional safety net against potential financial crises," a BOK official said.
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