By Kwanwoo Jun
The central banks of the U.S. and South Korea have agreed to increase their $60 billion currency-swap facility by three months via Dec. 31.
The settlement between the Federal Reserve and the Financial institution of Korea on extending the deal will assist stabilize monetary markets in South Korea, the BOK stated in an announcement early Thursday.
The deal was attributable to expire on Sept. 30 after either side prolonged it a number of occasions because it took impact in March 2020.
South Korea was considered one of 9 international locations that the Fed established non permanent foreign money swap traces with final 12 months to ease their doable U.S.-dollar liquidity crunch triggered by the Covid-19 pandemic.
The BOK and the Fed had maintained a $30 billion foreign money swap deal for 15 months in response to the 2008 monetary disaster.
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