This file picture exhibits a personal forex trade sales space in Seoul, Nov. 23. Yonhap
Korea’s overseas forex (FX) authorities mentioned Monday that they’ve begun discussions on extending their currency-swap association with the state pension operator, the finance ministry mentioned.
Because the Korean received continues to weaken towards the U.S. greenback, the Ministry of Economic system and Finance, the Financial institution of Korea (BOK), the Nationwide Pension Service (NPS), and the Ministry of Well being and Welfare overseeing the pension fund shaped a joint session physique final month.
Throughout the newest assembly of the four-way physique held final Sunday, the authorities started detailed discussions on extending the currency-swap contract, which is ready to run out on the finish of this yr, the finance ministry mentioned.
Below an settlement, the NPS can borrow as much as $65 billion from the BOK’s overseas reserves in trade for its local-currency holdings.
The forex swap deal was first established in September 2022 with an preliminary restrict of $10 billion. Since then, the restrict has been expanded to $50 billion in June 2024 and once more to $65 billion in December 2024.
