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Renewal of Bilateral Local Currency Swap Agreement With Bank of Korea

Summary:
Today, the Reserve Bank of Australia renewed the bilateral local currency swap agreement with the Bank of Korea. The initial swap agreement between the two central banks was signed in 2014 and has been renewed for three year periods since that time. The new agreement is for a further period of three years and can be renewed again in the future by mutual consent of both sides. The new agreement allows for the exchange of local currencies between the two central banks of up to A billion or KRW 9.6 trillion. This agreement is designed to promote bilateral trade for the economic development of the two countries, to enhance financial stability and for other, mutually agreed, purposes. The agreement will ensure that trade between the two

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Today, the Reserve Bank of Australia renewed the bilateral local currency swap agreement with the Bank of Korea. The initial swap agreement between the two central banks was signed in 2014 and has been renewed for three year periods since that time. The new agreement is for a further period of three years and can be renewed again in the future by mutual consent of both sides. The new agreement allows for the exchange of local currencies between the two central banks of up to A$12 billion or KRW 9.6 trillion.

This agreement is designed to promote bilateral trade for the economic development of the two countries, to enhance financial stability and for other, mutually agreed, purposes. The agreement will ensure that trade between the two countries can continue to be settled in local currency even in times of financial stress.

Reserve Bank Australia
The Reserve Bank of Australia (RBA) came into being on 14 January 1960 as Australia's central bank and banknote issuing authority, when the Reserve Bank Act 1959 removed the central banking functions from the Commonwealth Bank. The bank has the responsibility of providing services to the Government of Australia in addition to also providing services to other central banks and official institutions. It currently consists of the Payments System Board, which governs the payments system policy of the bank, and the Reserve Bank Board, which governs all other monetary and banking policies of the bank.

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