Bank of Korea: "USD 12 Billion Currency Swap Funds, No Shortage of Market Demand" (Comprehensive)

On the 20th, Lee Ju-yeol, Governor of the Bank of Korea, is answering questions from the press regarding the Korea-US currency swap agreement at the Bank of Korea headquarters on Sejong-daero, Jung-gu, Seoul. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Jang Sehee] The Bank of Korea stated regarding the initial supply of $12 billion from the Korea-US currency swap funds to the market, "The scale of this transaction was determined considering various recent demands in the foreign currency fund market, such as trade finance and short-term fund needs, and it is expected that the current market demand will be sufficiently met."

On the 29th, the Bank of Korea announced that it will conduct the first competitive bidding foreign currency loan using the Korea-US currency swap funds. The actual disbursement of funds to financial institutions will occur on the 2nd of next month.

The bidding method will proceed using the 'multiple price method,' as was done in 2008. The bidding will take place on the 31st from 10:00 AM for 30 minutes. The settlement date is the 2nd of next month. The maturity date for the 7-day loan is June 9, and for the 84-day loan, it is June 25.

Regarding the limits of banks' foreign currency fund operations, the Bank stated, "This time, all banks including the Korea Eximbank will be supplied," and added, "We expect foreign currency funds to be efficiently supplied to the market."

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