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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] The Bank of Korea and the Swiss National Bank have renewed their bilateral currency swap agreement, extending a financial safety net between the two countries.
The swap arrangement was first signed in 2018 and extended once in 2021, making the latest deal the third agreement between the two central banks.
Under the renewed arrangement, valid until March 1, 2031, the two central banks can exchange funds of up to 10 billion Swiss francs, equivalent to about 18.5 trillion won.
Reflecting changes in exchange rates, the won-denominated support limit has been raised from 11.2 trillion won, while the ceiling in Swiss francs remains unchanged.
South Korea’s Ministry of Economy and Finance said the renewal will further strengthen the country’s foreign exchange safety net during periods of financial stress, noting Switzerland’s status as a major global reserve currency issuer.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
