Korea Business News Agency - NSP NEWS AGENCY.

(Seoul=NSP News Agency) hYUNJIN KIM Journalist = Foreign exchange authorities (Bank of Korea and Ministry of Strategy and Finance) and the National Pension Service (NPS) agreed on performing FX swaps within 10 billion dollars (14,105 billion won) limits.

According to the agreement, NPS will supply foreign currency funds for foreign investment through FX swaps with authorities.

Swaps are within 10 billion dollars by the end of this year, with six or 12 months of maturity for each transaction. Both parties do not have unwinding right.

The NPS said, “We expect securing stable foreign investment funds without burdening counterparty of any risks, and our reduced buy-side demands in spot exchange would contribute balanced supply and demand in FX markets.

BOA said, “FX swaps will decrease foreign exchange reserves during the term” and added, “However, the decrease is temporary, as all are returned at times of maturity.”

NSP News Agency hYUNJIN KIM Journalist kimhj30310@nspna.com
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