South Korea Extends Currency Swap Agreement with Switzerland for Five More Years

First Signed in 2018, Extended in 2021
Maintains Existing Limit of 10 Billion Swiss Francs
Switzerland Classified as a Key Reserve Currency Country

South Korea and Switzerland have renewed their currency swap agreement, which serves as a safety net for the foreign exchange market.

On February 11, cash transportation personnel are carrying out the distribution of Lunar New Year funds to be supplied to commercial banks at the Bank of Korea headquarters in Jung-gu, Seoul. 2026.02.11 Photo by Joint Press Corps

The Ministry of Economy and Finance announced on the 9th that the Bank of Korea and the Swiss National Bank have renewed the Swiss franc–won currency swap agreement in Basel, Switzerland.

The bilateral currency swap was first signed in 2018 and had previously been extended in 2021.

With this renewal, the central banks of both countries can provide mutual liquidity support up to the existing limit of 10 billion Swiss francs or 18.5 trillion won. The Ministry of Economy and Finance explained, "Reflecting recent exchange rate changes, the won-denominated limit has been raised from 11.2 trillion won to 18.5 trillion won."

The currency swap agreement between the two countries was signed to strengthen financial cooperation and to promote the functioning of financial markets. The contract period remains the same at five years, from March 1, 2026, to March 1, 2031.

Switzerland is classified as one of the six key reserve currency countries, alongside the United States, the eurozone, the United Kingdom, Canada, and Japan.

A government official stated, "As a core reserve currency country, Switzerland's renewal of the currency swap agreement is considered to have strengthened South Korea's foreign exchange safety net, which can be utilized in times of financial crisis."

An inter-country currency swap is an agreement that allows each country to deposit its own currency and borrow the partner country's currency at a predetermined exchange rate in times of sudden foreign exchange volatility or other emergencies. This gives central banks an additional funding channel in the event of a shortage of foreign currency liquidity.

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