SEOUL: South Korea’s central bank says it has agreed to renew an existing currency swap agreement with the US Federal Reserve (Fed) by six months to at least March 31,2021.
The US$60bil currency swap deal has been in place since March as part of a number of dollar swap lines the Fed signed with central banks around the world to cushion the global economic blow from the coronavirus pandemic.
The Bank of Korea said it will conduct auctions to inject dollar liquidity into onshore markets if needed. Its recent dollar auctions from the Fed swap hasn’t been fully taken up, in a sign the market has stabilised somewhat. — Reuters
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