S.Korea, U.S. renew currency swap deal for 6 months
Source: Xinhua | 2020-12-18
Central banks of South Korea and the United States agreed to renew their currency swap deal for six more months to deal with uncertainty from the COVID-19 resurgence, the Bank of Korea (BOK) said on Thursday.
The BOK and the U.S. Federal Reserve Board agreed to extend the bilateral currency swap deal worth 60 billion U.S. dollars, in which the South Korean currency is swapped for the U.S. dollar, for six more months to Sept. 30, 2021.
The two central banks initially signed the swap deal in late March to help stabilize the financial market amid rising volatility caused by the COVID-19 pandemic.
The BOK said in a statement that the extension was aimed to preemptively tackle uncertainties from the COVID-19 resurgence though risk preference was roughly recovered in the global financial market.
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