Bank Negara Malaysia, Malaysia's central bank, has entered into a deal with South Korea's Bank of Korea, which allows for the use of local currencies for bilateral trade and cooperation between the two countries. 

The arrangement enables the exchange of currencies of up to KRW5 trillion ($4.7 billion) or MYR15 billion, with an effective period of three years and could be extended upon mutual agreement, the banks said in a joint statement. 

The deal with Malaysia is South Korea's third currency swap arrangement with another country in the last month, as it moves to protect itself against currency swings and to develop better ties with other economies. The other two countries were the UAE and Indonesia.