U.S., South Korea Extend $60 Billion Currency-Swap Agreement

The central banks of the U.S. and South Korea have agreed to extend their $60 billion currency-swap facility by three months through Dec. 31.

The agreement between the Federal Reserve and the Bank of Korea on extending the deal will help stabilize financial markets in South Korea, the BOK said in a statement early Thursday.

The deal was due to expire on Sept. 30 after both sides extended it multiple times since it took effect in March 2020.

South Korea was one of nine countries that the Fed established temporary currency swap lines with last year to ease their possible U.S.-dollar liquidity crunch triggered by the Covid-19 pandemic.

The BOK and the Fed had maintained a $30 billion currency swap deal for 15 months in response to the 2008 financial crisis.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com


  (END) Dow Jones Newswires
  06-16-21 1657ET
  Copyright (c) 2021 Dow Jones & Company, Inc.

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.