BOK, state pension fund agree to open currency swap line

SEOUL– South Korea’s central bank said Friday that it has agreed to open a dollar-for-won currency swap line with the state pension fund in a bid to ease demand for dollars in the domestic foreign exchange market and support the rapidly weakening local currency.

The swap deal will allow the National Pension Service (NPS) to borrow up to US$10 billion from foreign reserves held by the Bank of Korea (BOK) in exchange for its local currency holdings, the BOK said in a press release.

Source: Yonhap News Agency