U.S., South Korea Extend $60 Billion Currency-Swap Agreement
June 16 2021 - 5:10PM
Dow Jones News
By Kwanwoo Jun
The central banks of the U.S. and South Korea have agreed to
extend their $60 billion currency-swap facility by three months
through Dec. 31.
The agreement between the Federal Reserve and the Bank of Korea
on extending the deal will help stabilize financial markets in
South Korea, the BOK said in a statement early Thursday.
The deal was due to expire on Sept. 30 after both sides extended
it multiple times since it took effect in March 2020.
South Korea was one of nine countries that the Fed established
temporary currency swap lines with last year to ease their possible
U.S.-dollar liquidity crunch triggered by the Covid-19
pandemic.
The BOK and the Fed had maintained a $30 billion currency swap
deal for 15 months in response to the 2008 financial crisis.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
June 16, 2021 16:57 ET (20:57 GMT)
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