In an announcement last Sunday, the South Korean central bank had formalized a bilateral, three year currency swap deal with the United Arab Emirates. The deal is worth nearly USD5.4 billion and it serves to fortify the trade and financial partnership of the two countries.

The agreement would allow either country to swap KRW5.8 trillion or AED20 billion or vice versa. The Bank of Korea announcement further said the agreement expires in three years but is extendible by mutual agreement.

This is the second agreeement of its kind announced by the Bank of Korea, Earlier, it had said it was in discussions with the Indonesian central bank for a won-rupiah swap valued at USD10 billion. 

The BOK is also pursuing the same kind of deal with other countriesm according to a Bank of Korea official interviewed by Reuters. The official though declined if the other deals would be announced in a similar fashion in the future.