The Bank of Korea said the first dollar supply under the Korea-US currency swap agreement will be made during next week.

A senior official at Han said today (25th) "We are currently working on a working consultation with the Fed and are aiming to schedule a contract this week and provide funding during next week."

He added, "There are a lot of specific consultations, but overall, it's going on without great difficulty."

Earlier, Han Eun announced on the 19th that the US Federal Reserve System (Fed) and the bilateral currency swap agreement were to be signed at a size of $ 60 billion.

The current discussions with the Fed are mainly about supply methods, including primary supply amount, supply method, and amount.

The total currency swap limit is $ 60 billion, but not all of them are supplied at once.

The Bank of Korea and the Federal Reserve signed a 30 billion dollar currency swap contract in 2008, when the global financial crisis was heightened.

At that time, it made five bids and supplied a total of $ 16.4 billion to the market.

The primary supply was $ 4 billion.

An official from Han said, "We plan to make the supply of a significant amount in the first phase." In the financial crisis, it will be much larger than the first supply. "

Currency Swap is a contract that allows you to leave your currency in the other country and receive the currency or dollar of the other country in an emergency, such as the foreign exchange crisis.

If the dollar raised through currency swaps is supplied to domestic foreign exchange banks during the next week, the market expects that the 'dollar drought' and financial market instability, which have been the cause of the recent exchange rate slump, will be resolved.

(Photo = Yonhap News)