S. Korea, National Pension to Expand FX Swap to $65 Billion
- Swap deal’s ceiling has been raised from $50 billion
- NPS is big player in Korea’s foreign-exchange market
South Korea’s central bank agreed with the National Pension Service to expand the size and duration of a currency swap deal, a move that may help slow the won’s decline.
The swap deal will be raised to $65 billion from $50 billion, while the duration of the agreement was extended by another year to the end of 2025, the Bank of Korea said in a statement Thursday. The state pension fund is a big player in the FX market as it expands its overseas investment.