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South Korea and Indonesia Renew 5-Year Swap, Set April Launch for QR Payments

The move supports local-currency trade settlement, reinforcing a liquidity backstop for regional stability.

Overview

  • The bilateral currency swap allows exchanges up to 10.7 trillion won (115 trillion rupiah), roughly US$7.3 billion.
  • The renewed arrangement takes effect March 6, 2026 through March 5, 2031 and marks the fourth extension since the pact began in 2014.
  • Bank of Korea Governor Rhee Chang-yong and Bank Indonesia Governor Perry Warjiyo signed the renewal in Seoul.
  • The central banks say the line is intended to promote bilateral trade, enable local-currency settlement, and provide contingency liquidity during market stress.
  • A cross-border QR payment service will roll out at merchants in both countries in April, with the BOK citing lower foreign-exchange and fee burdens and plans to extend the system to online use and other ASEAN markets.