Promote the Korean-US currency exchange… at the earliest this week

over $60 billion

(Sejong = Yonhap Infomax) Reporter Jin-woo Oh and Jin-woo Choi = South Korea and the United States are said to be pushing for a currency swap, a swap contract between the dollar and the winner, in the wake of Korea this week – Summit of the United States.

According to the banking industry on the 21st, Bank of Korea is known to be in the midst of discussions with the US Federal Reserve (Fed) for a currency swap.

Currently, the volume of Korean-US currency exchange is over $60 billion.

It is said that not only the central bank, the Bank of Korea, but also all relevant ministries such as the Ministry of Strategy and Finance and the Office of the President are making an all-out effort to achieve a currency exchange between the United States and Korea.

The foreign exchange market is raising the prospect of currency swaps ending as early as this evening. It is expected to be completed within this week at the latest.

The Federal Reserve’s Federal Open Market Committee (FOMC) will hold a two-day meeting starting on the 20th (local time).

If the two countries sign a currency exchange, it will be the first time since March 19, 2020, when the situation of the new coronavirus infection (COVID-19) began. At that time, South Korea signed a $60 billion currency exchange agreement with the United States.

Recently, the dollar-earned exchange rate has been on an upward trend in the so-called ‘dollar king’ trend. The dollar won exchange rate, which was 1,194.10 won on January 4, has risen to a level approaching 1,400 won now.

As a result, the price of imported goods has risen sharply, becoming an obstacle to stabilizing domestic consumer prices. Recently, large processed food companies are competing for price increases due to the sudden increase in the price of raw ash.

Earlier on the 16th, Choi Sang-mok, chief economic secretary of the presidential office, said, “I expect there will be a natural discussion about the stability of the foreign exchange market because it is a common interest,” when asked if there is a possibility of discussion currency exchange or collection at the Korea-US summit on the 16th. .

Chief Choi added, “The two leaders have agreed to consult closely on the foreign exchange market. There may be additional discussions on such matters.” Although he did not answer the possibility of currency exchange, it means that various discussions for stabilizing the foreign exchange market are possible.

jwoh@yna.co.kr
jwchoi@yna.co.kr
(End)

This article was submitted at 08:35 on the Infomax financial information terminal.

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