Currency swap to have limited impact on economy: analysts
An electronic trading board at Hana Bank's headquarters in Seoul shows a surge in the won-dollar exchange rate on Thursday morning. The rate closed at 1,130.4 won per U.S. dollar, up 13.2 won from a day ago, reacting to the Federal Reserve's signal that tightening would occur earlier than expected. YonhapBy Lee Min-hyungThe Bank of Korea (BOK) extended Thursday its currency swap deal, worth $60 billion (67.77 trillion won), with the United States Federal Reserve, for another three months until the end of 2021, a move to stabilize the financial and foreign exchange markets here, the BOK said.“The BOK expects that this further extension of the swap arrangement with the Fed will contribute to sustaining the stability of financial markets, including the foreign exchange market, in Korea,” the central bank said in a statement. “The central bank will provide U.S. dollar loans to banks through competitive auctions, using funds from the swap line, when deemed necessary.”Local economists say that the extension will have a limited impact on Korea's capital market, as th
Jun 17, 2021By Lee Min-hyung