ID :
35267
Sat, 12/13/2008 - 04:59
Auther :
Shortlink :
http://m.oananews.org//node/35267
The shortlink copeid
S. Korea to announce currency swaps with Japan, China
SEOUL, Dec. 12 (Yonhap) -- South Korea's central bank is expected to announce the expansion of existing currency swap facilities with its counterparts from Japan and China later in the day, sources said Friday.
Under the current deals, the Bank of Korea (BOK) can draw US$13 billion from the
Bank of Japan and tap up to US$4 billion from the People's Bank of China.
According to market watchers, South Korea is expected to raise the swap lines
with the two countries to $30 billion, respectively.
In late October, the BOK announced a $30 billion currency swap agreement with the
U.S. Federal Reserve and on Dec. 2, the BOK tapped a $4 billion currency swap
line for the first time.
The move comes as the local financial market has been suffering from a dollar
shortage in the wake of the collapse of U.S. investment bank Lehman Brothers
Holdings Inc. The won has fallen more than 30 percent against the U.S. dollar so
far this year.
(END)
Under the current deals, the Bank of Korea (BOK) can draw US$13 billion from the
Bank of Japan and tap up to US$4 billion from the People's Bank of China.
According to market watchers, South Korea is expected to raise the swap lines
with the two countries to $30 billion, respectively.
In late October, the BOK announced a $30 billion currency swap agreement with the
U.S. Federal Reserve and on Dec. 2, the BOK tapped a $4 billion currency swap
line for the first time.
The move comes as the local financial market has been suffering from a dollar
shortage in the wake of the collapse of U.S. investment bank Lehman Brothers
Holdings Inc. The won has fallen more than 30 percent against the U.S. dollar so
far this year.
(END)
