Economic news

South Korea expands currency swap with pension fund as won tumbles

2024.06.20 21:28

By Cynthia Kim

SEOUL (Reuters) – South Korea’s foreign exchange authorities on Friday said they agreed with the National Pension Service to expand a currency swap line to $50 billion from the current $35 billion to defend the tumbling won against the dollar.

“The foreign exchange authorities believe that the FX swap with the National Pension Service can work to alleviate the supply-demand imbalance in the foreign exchange market by absorbing the National Pension Service’s spot dollar purchase demand when the currency market is unstable,” the finance ministry said in a statement.

© Reuters. FILE PHOTO: South Korean 10,000 won note is seen on U.S. 100 dollar notes in this picture illustration taken in Seoul, South Korea, December 15, 2015. REUTERS/Kim Hong-Ji/File Photo

The move is seen as an indirect intervention into the spot dollar-won market because the swap line allows the fund to borrow from the central bank’s foreign exchange reserves instead of buying dollars in the onshore currency market.

The won slid to 1,393.0 per dollar early on Friday, the weakest level since April 16 and nearing a key resistance level of 1,400 closely watched by the market participants.



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 75,996.36 1.17%
vested-xor
Vested XOR (VXOR) $ 3,405.08 99,999.99%
ethereum
Ethereum (ETH) $ 2,907.57 3.21%
tether
Tether (USDT) $ 1.00 0.06%
solana
Solana (SOL) $ 199.45 5.68%
bnb
BNB (BNB) $ 598.45 0.54%
usd-coin
USDC (USDC) $ 1.00 0.02%
xrp
XRP (XRP) $ 0.547769 1.30%
dogecoin
Dogecoin (DOGE) $ 0.198185 2.82%
staked-ether
Lido Staked Ether (STETH) $ 2,906.51 3.21%
cardano
Cardano (ADA) $ 0.426321 15.12%
tron
TRON (TRX) $ 0.161072 0.07%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,445.21 3.60%
the-open-network
Toncoin (TON) $ 4.86 0.68%
shiba-inu
Shiba Inu (SHIB) $ 0.000019 1.10%
avalanche-2
Avalanche (AVAX) $ 27.48 1.45%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 75,964.35 1.48%
weth
WETH (WETH) $ 2,905.92 3.18%
chainlink
Chainlink (LINK) $ 12.74 3.58%
bitcoin-cash
Bitcoin Cash (BCH) $ 372.28 1.20%
sui
Sui (SUI) $ 2.28 1.29%
polkadot
Polkadot (DOT) $ 4.29 4.54%
leo-token
LEO Token (LEO) $ 6.35 3.16%
usds
USDS (USDS) $ 1.00 0.18%
litecoin
Litecoin (LTC) $ 71.04 0.20%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,059.75 3.24%
uniswap
Uniswap (UNI) $ 8.73 2.22%
near
NEAR Protocol (NEAR) $ 4.18 0.17%
aptos
Aptos (APT) $ 9.65 0.49%
pepe
Pepe (PEPE) $ 0.000011 3.93%
bittensor
Bittensor (TAO) $ 501.53 2.90%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.40 0.83%
internet-computer
Internet Computer (ICP) $ 7.70 1.25%
dai
Dai (DAI) $ 1.00 0.08%
monero
Monero (XMR) $ 165.12 1.58%
stellar
Stellar (XLM) $ 0.101345 3.37%
ethereum-classic
Ethereum Classic (ETC) $ 20.14 0.02%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.00%
whitebit
WhiteBIT Coin (WBT) $ 19.59 1.68%
kaspa
Kaspa (KAS) $ 0.112463 5.63%
crypto-com-chain
Cronos (CRO) $ 0.099916 16.19%
aave
Aave (AAVE) $ 180.75 1.50%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.344653 1.30%
blockstack
Stacks (STX) $ 1.64 2.16%
okb
OKB (OKB) $ 40.25 0.48%
first-digital-usd
First Digital USD (FDUSD) $ 1.00 0.06%
dogwifcoin
dogwifhat (WIF) $ 2.32 0.73%
arbitrum
Arbitrum (ARB) $ 0.571311 0.56%
filecoin
Filecoin (FIL) $ 3.71 0.92%
mantle
Mantle (MNT) $ 0.65454 2.84%