Business & Finance
Bank of Korea to offer $12bn in dollar lending from Fed currency swap
The Bank of Korea will auction the dollars for seven-day, and 84-day terms at 25 basis points over the overnight in
- The Bank of Korea will auction the dollars for seven-day, and 84-day terms at 25 basis points over the overnight index swap rate.
- The agreement with South Korea is a $60 billion bilateral currency swap facility for at least six months.
SEOUL: South Korea's central bank said on Sunday it will draw on its new currency swap with the US Federal Reserve to provide $12 billion of US dollar funding to local banks via auctions on March 31.
The Bank of Korea will auction the dollars for seven-day, and 84-day terms at 25 basis points over the overnight index swap rate, it said in a statement.
The Fed said on March 19 the BOK is one of nine central banks it will sign new dollar swap lines with in a coordinated action to prevent the coronavirus epidemic from causing a global economic rout.
The agreement with South Korea is a $60 billion bilateral currency swap facility for at least six months.
The BOK said it will hold additional auctions to inject dollar liquidity if needed.
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