The Bank of Korea Utilizes the US Federal Reserve's Dollar Supply Facility... $60 Billion Scale

Immediate Funding Available When US Dollar Funds Are Needed

[Asia Economy Reporter Jang Sehee] South Korea has agreed to use a system that allows immediate procurement of US dollars when needed. Accordingly, the Bank of Korea can now instantly obtain US dollar funds from the Federal Reserve by utilizing eligible securities it holds.

On the 23rd, the Bank of Korea announced that it agreed to use the standing FIMA (FIMA Repo Facility) introduced by the US Federal Reserve (Fed) when necessary.

The transaction limit is 60 billion dollars, and the borrowing rate is 0.25%. The maturity is one day, 'overnight,' and can be extended.

FIMA is a system where the Fed purchases US Treasury securities held by foreign central banks under repurchase agreements to supply US dollar funds to foreign central banks.

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