S Korea, Australia sign currency swap deal to promote trade

SEOUL, Feb 23 (Xinhua) :  South Korea and Australia have signed a currency swap agreement to help promote bilateral trade and trade settlement in local currencies even in times of financial stress, Seoul's central bank said Sunday.
Bank of Korea (BOK) Governor Kim Choong-soo and his Australian counterpart Glenn Stevens signed the currency swap deal Sunday in Sydney, the BOK said in a statement. The two central bank chiefs were staying in Sydney to attend the meeting of G20.
The deal will allow for the exchange of local currencies between the two central banks of up to 5 trillion won (4.5 billion US dollars) or 5 billion Australian dollars for three years. The period could be extended by mutual consent of both sides.
"This agreement is designed to promote bilateral trade for the economic development of the two countries," the joint statement said. "In particular, the agreement will ensure that trade between the two countries can continue to be settled in local currency even in times of financial stress."
Australia is South Korea's seventh-largest trade partner, with bilateral trade reaching around 30 billion US dollars in 2013. South Korea is Australia's fourth-largest trading partner.
Among 20.8 billion US dollars, the value South Korea imported from Australia in 2013, natural resources such as iron ore and soft coal accounted for more than 80 per cent.