BOK to Supply Funds for Korea-US Currency Swap Next Week... Far Exceeding 4 Billion Dollars (Update)

[Image source=Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] The Bank of Korea announced on the 25th that it will finalize the currency swap agreement with the U.S. Federal Reserve (Fed) this week and plans to supply funds next week.

A senior official from the Bank of Korea stated, "We are currently conducting working-level consultations with the Fed and aim to supply funds next week," adding, "Overall, the process is proceeding without major difficulties, and the main contract will be finalized this week."

Currently, the Bank of Korea is negotiating with the Fed on the ▲initial supply amount ▲supply method ▲interest rate, among other details. Although the total limit for this currency swap is set at $60 billion, the funds will not be supplied all at once. The senior official added, "We plan to supply a substantial amount in the first phase."

The Bank of Korea previously signed a Korea-U.S. currency swap worth $30 billion during the 2008 global financial crisis. At that time, a total of $16.4 billion was supplied through five auctions. In 2008, $4 billion was supplied in the first phase, but this time, it is known that a much larger amount than $4 billion will be supplied.

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