South Korea and Australia have renewed their currency swap deal to ensure a steady exchange of goods and services.

According to the Bank of Korea on Monday, the deal that will now be extended to February 5, 2028 will allow for the exchange of up to nine-point-six trillion won, or 12 billion Australian dollars.

The central bank mentioned that the two countries have agreed to extend the deal by five years instead of the usual three to maintain a stable currency swap scheme.

The countries first signed the swap deal in 2014 and have renewed it every three years.

Currency swap deals help both parties involved minimize foreign borrowing costs, especially during periods of increased economic risks and uncertainty.