South Korea and the United States have extended a currency swap deal worth $60 billion for a further six months through March 31, 2021, the Bank of Korea said on Thursday
SEOUL (Pakistan Point News / Sputnik - 30th July, 2020) South Korea and the United States have extended a currency swap deal worth $60 billion for a further six months through March 31, 2021, the Bank of Korea said on Thursday.
The agreement was initially reached in late March to help stabilize the market amid the ongoing COVID-19 pandemic. Using the mechanism, the Bank of Korea supplied $19.87 billion to other banks from March to May, and the lingering economic impacts of the pandemic prompted the decision to extend the agreement.
"The Bank of Korea and the US Federal Reserve at 03:00 on July 30 [18:00 GMT on July 29] agreed to postpone the expiration of the currency swap deal by six months from September 30 this year to March 31 next year," the bank said.
This latest deal is the second of its kind, with the first taking place during the 2008 financial crisis. At that time, Seoul and Washington agreed on a $30 billion deal that triggered a rally on the Asian country's economic markets.
