<Anchor>
Korea and the United States have signed a $ 60 billion currency swap agreement. There was a minus passbook that allowed us to take out the dollar, but the stock price soared and the won-dollar exchange rate fell sharply.
I'm Jeong Seong-jin.
<Reporter>
The Bank of Korea and the U.S. Federal Reserve System have signed a $ 60 billion currency swap agreement.
[Lee Joo-yeol / Bank of the Bank of Korea: Since the instability in the domestic foreign exchange market is also driven by the growing demand for the dollar, we are expected to contribute to alleviating the anxiety in the domestic foreign exchange market.]
Currency Swap means exchange of currency, and it is a transaction that lends Korean Won and borrows Dollar according to a predetermined exchange rate.
The contract period is at least 6 months, until September 19th.
In October 2008, during the financial crisis, the Bank of Korea signed a $ 30 billion currency swap contract with the Fed.
This time, the size has doubled.
The Bank of Korea plans to supply the US dollar, which it has raised through the currency swap, to the market immediately.
The Fed has signed currency swap agreements with central banks in nine countries, including Australia, Brazil, and Mexico, as well as Korea.
In the news of the signing of the currency swap contract, the won-dollar exchange rate in the Seoul foreign exchange market closed at 1,246.5 won per dollar, down 39.2 won.
It was as much as yesterday's rise.
Stock markets that plunged day after day rebounded as well.
KOSPI surged 7.44% despite foreigners selling about 580 billion won.
The KOSDAQ index also rose 9.2%.
Seeing the effect of signing the 'currency swap' ... Stock price surge · Exchange rate decline
2020-03-20T08:16:30.008Z
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Korea and the United States have signed a $ 60 billion currency swap agreement. There was a minus passbook that allowed us to take out the dollar, but the stock price soared and the won-dollar exchange rate fell sharply.
Source: sbskr