ID :
27502
Thu, 10/30/2008 - 16:44
Auther :
Shortlink :
http://m.oananews.org//node/27502
The shortlink copeid
Currency swap deal will help stabilize markets: finance minister
SEOUL, Oct. 30 (Yonhap) -- The currency swap arrangement agreed with the United States will contribute much to the stabilization of the wobbling local financial system, Finance Minister Kang Man-soo said Thursday.
Earlier, the U.S. Federal Reserve announced that it will sign a currency swap
deal of up to US$30 billion each with the central banks of South Korea, Mexico,
Brazil and Singapore, effective until April 30 of next year.
"The opening of the swap line with the U.S. will likely play a big role in
stabilizing our foreign currency and financial markets," Kang told reporters in a
press briefing held hours after the Fed's decision.
The currency swap deal with the U.S. came as South Korean banks and companies are
having difficulty in securing liquidity enough to service debts and pay for their
business activities. The increased demand for dollars has put downward pressure
on the won, with the local currency falling over 35 percent against the dollar so
far this year.
Earlier, the U.S. Federal Reserve announced that it will sign a currency swap
deal of up to US$30 billion each with the central banks of South Korea, Mexico,
Brazil and Singapore, effective until April 30 of next year.
"The opening of the swap line with the U.S. will likely play a big role in
stabilizing our foreign currency and financial markets," Kang told reporters in a
press briefing held hours after the Fed's decision.
The currency swap deal with the U.S. came as South Korean banks and companies are
having difficulty in securing liquidity enough to service debts and pay for their
business activities. The increased demand for dollars has put downward pressure
on the won, with the local currency falling over 35 percent against the dollar so
far this year.
