(Seoul = Yonhap Infomax) Reporter Jin-woo Oh = The Bank of Korea and the National Pension Service are pushing for a currency swap contract.
This is a way to reduce the burden of purchasing spot exchanges by procuring the National Pension Service’s foreign investment dollars through a currency swap with the BOK.
An official from the BOK said on the 21st that regarding the currency swap between the BOK and the National Pension Service, a decision should be prioritized at the Pension Fund Management Committee scheduled for this Friday (23rd).
If the plan is passed by the Pension Fund Management Committee, he added that further discussions on specific measures should be continued.
This is in line with the government-wide discussion of measures to stabilize the supply and demand of the foreign exchange market.
In the meantime, there have been many concerns that the demand to buy dollars from the National Pension Service’s large-scale overseas investment will increase the dollar-won upward pressure.
Deputy Prime Minister and Minister of Strategy and Finance Choo Kyung-ho said that he was preparing a plan to stabilize the supply and demand in the foreign exchange market.
According to pension officials, the pension plan is also planning to significantly increase the short-term foreign currency fund holding limit from the current $600 million.
If the holding of short-term foreign currency funds increases, the frequency of transactions in the spot exchange can be reduced by holding the dollars brought in through the disposal of overseas assets and using them for new investment.
[email protected]
(End)
This article was served at 17:13, two hours earlier on the Infomax financial information terminal.
© Yonhap Infomax Unauthorized reproduction and redistribution prohibited
