PETALING JAYA (Bernama) – The Gyeonggi Business Centre, Kuala Lumpur (GBCKL), expects bilateral trade between Malaysia and South Korea to improve further with implementation of the Malaysia-Korea Currency Swap-Financed Trade Settlement Facility, early next year.
Its Regional Director for the Korean Trade Centre (Asia), Patrick On said the settlement facility, expected to be commercially viable next year, would facilitate trade settlements and translate into higher trades.
“The strong support of the central banks of both countries for this trade settlement facility will accelerate use of the respective currencies for cross-border trade.
“Up to RM15.0 billion or KRW5.0 trillion will be made available by the two central banks to facilitate trade settlements between firms of both countries, using the respective currencies,” he told Bernama.
On said the settlement facility would benefit importers and exporters of both countries by reducing the risk of currency mismatches and potentially lower transaction costs in international trade.