According to Yonhap News Agency’s report on December 17, the Bank of Korea (the Bank of Korea) stated on the same day that the bank and the Federal Reserve agreed to extend the expiration date of the US-Korea currency swap agreement by six from the original March 31 next year.
From September to September 30, the content and scale of the agreement (60 billion US dollars) remained unchanged.
The Bank of Korea stated that both parties agreed that the overall risk aversion atmosphere in the international financial market is gradually fading and the domestic foreign exchange market is generally operating smoothly.
However, in order to deal with uncertainties such as the spread of the epidemic, it is necessary to extend the currency swap agreement. The bank believes that the extension is expected to maintain the stability of the domestic foreign exchange market and financial market, and said it will use the agreement in a timely manner when necessary.
After the United States and South Korea signed a currency swap agreement on March 19 this year, the expiry date will be extended from September 30 to March next year on July 30, and this time will be extended again to September next year.
According to Reuters news, the currency swap agreement between the United States and Australia, Brazil, Mexico, Singapore, Sweden, Denmark, Norway, and New Zealand will also be extended to September next year.