BOK, state pension operator sign $35 billion FX swap deal

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BOK, state pension operator sign $35 billion FX swap deal

Published: 13 Apr. 2023, 18:51

Korea's central bank and state pension operator have agreed to open a currency swap line as part of efforts to ease market volatility, foreign currency authorities said Thursday.

The agreement, which will run through the end of this year, will allow the National Pension Service to borrow up to $35 billion from the foreign reserves of the Bank of Korea (BOK) in exchange for its local currency holdings, according to the BOK and the finance ministry.

The deal is aimed at easing dollar demand in the spot market from the NPS for its overseas investments, and help curb the excessive ups and downs in the foreign exchange rates, they said.

YONHAP