The Bank of Korea Says "Foreign Currency Liquidity is Stable, Temporarily Suspending Korea-US Currency Swap Fund Bidding"

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The Bank of Korea announced on the 6th that it has decided to suspend the bidding for the supply of funds under the Korea-US currency swap for the time being, considering the recent favorable trend in foreign currency liquidity conditions.

On the same day, the Bank of Korea conducted the 6th foreign currency loan competitive bidding using a total of 4 billion dollars (83-day maturity) of Korea-US currency swap funds. As a result, the total bid amount was 1.329 billion dollars, all of which was awarded. The awarded amount will actually be supplied on the settlement date, the 8th.

The Bank of Korea stated, "Due to the recent continuous decline in LIBOR (London Interbank Offered Rate), rise in swap rates, and increase in foreign currency deposits, foreign currency liquidity conditions appear to be maintaining a favorable trend," adding, "We plan to suspend bidding for the time being and monitor market conditions."

The awarded amounts of currency swap funds were 8.72 billion dollars in the 1st round, 4.415 billion dollars in the 2nd round, 2.025 billion dollars in the 3rd round, 2.119 billion dollars in the 4th round, and 1.264 billion dollars in the 5th round.

Meanwhile, a currency swap is a contract that allows a country to deposit its own currency with a counterpart country and receive the counterpart country's currency or dollars in times of emergency such as a foreign exchange crisis.

This content was produced with the assistance of AI translation services.