Hong Nam-ki: "Extension of Korea-US Currency Swap Expected to Preemptively Curb Market Instability"

'The 12th Emergency Economic Central Countermeasures Headquarters Meeting'

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said in his opening remarks at the 12th Emergency Economic Central Countermeasures Headquarters meeting on the 30th, "This extension of the maturity is highly evaluated for its effect of proactively blocking market instability by continuously maintaining an additional external safety net in preparation for emergencies." He emphasized that the early extension two months before maturity has great significance in resolving market uncertainty early.

He continued, "The foreign exchange supply and demand conditions have remained stable since the signing of the currency swap agreement, but the spread of the novel coronavirus (COVID-19) continues, and uncertainties in the international financial market still exist," adding, "The government will respond promptly as necessary."

Meanwhile, the currency swap agreement between Korea and the United States, worth 60 billion dollars, has been extended until the end of March next year. Although the domestic foreign exchange market shows a stable appearance compared to the early spread of COVID-19, uncertainties due to COVID-19 still persist, leading to the judgment that it is necessary to extend the Korea-US currency swap, regarded as a 'foreign currency safety net.'

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