Previous post Next post

South Korea and Switzerland set a currency swap

SNB Logo

The Swiss National Bank will sign the agreement with the Bank of Korea later in February (Keystone) - Click to enlarge

South Korea and Switzerland are entering into a bilateral currency swap agreement, it was announced on Friday. The move is aimed at strengthening buffers against external financial shocks for both countries.

“The swap agreement enables Korean won and Swiss francs to be purchased and repurchased between the two central banks, up to a limit of KRW11.2 trillion, or CHF10 billion [$10.6 billion],” a Swiss National Bank statement saidexternal link.

The agreement will be formally signed in Zurich on February 20, added the statement, which can also be seen on the Bank of Korea websiteexternal link.

The two banks had “enjoyed a constructive exchange of views for many years” and that the bilateral swap agreement would “further strengthen the collaboration between the two institutions”.

South Korea is also expecting good things from the agreement. “The currency swap will help stabilise financial markets and raise global credibility [of South Korea],” finance minister Kim Dong-yeon told reporters after meeting Bank of Korea Governor Lee Ju-yeol in Seoul.

Full story here
About Swissinfo
SWI – the international service of the Swiss Broadcasting Corporation (SBC). Since 1999, has fulfilled the federal government’s mandate to distribute information about Switzerland internationally, supplementing the online offerings of the radio and television stations of the SBC. Today, the international service is directed above all at an international audience interested in Switzerland, as well as at Swiss citizens living abroad.
Previous post See more for 3) Swiss Markets and News Next post
Tags: ,,

Permanent link to this article:

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

This site uses Akismet to reduce spam. Learn how your comment data is processed.