RP, S. Korea sign currency swap deal

RP, S. Korea sign currency swap deal

MANILA: The Philippines' central bank said on Tuesday it had signed a new US$1.5-billion currency swap agreement with its South Korean counterpart.

The new agreement renewed the $1-billion currency swap deal between the two financial institutions in 2002, which already expired in August.

Under the new agreement, the Philippine central bank or the Bank of South Korea can swap their local currencies totaling $1.5 billion for balance-of-payments or short-term liquidity support.

Similar agreements have been signed among central banks in countries across the region in a bid to avoid a recurrence of the 1997 Asian financial crisis when the collapse of the Thai baht also shook other Asian currencies. -- DPA