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BOK extends currency swap arrangement with U.S. Federal Reserve

Source : Bank of Korea

As of 10:00 a.m. EST February 3, the Bank of Korea and the U.S. Federal Reserve have extended their temporary reciprocal currency arrangement, originally set to expire on April 30, 2009, until October 30, 2009, EST.

To address continued pressures in global U.S. dollar funding markets, the temporary reciprocal currency arrangements (swap lines) between the Federal Reserve and other central banks have been extended to October 30, 2009.  This extension currently applies to the swap lines between the Federal Reserve and each of the following central banks:  the Reserve Bank of Australia, the Banco Central do Brasil, the Bank of Canada, Danmarks Nationalbank, the Bank of England, the European Central Bank, the Bank of Korea, the Banco de Mexico, the Reserve Bank of New Zealand, the Norges Bank, the Monetary Authority of Singapore, the Sveriges Riksbank, and the Swiss National Bank.  The Bank of Japan will consider the extension at its next Monetary Policy Meeting.

The Bank of Korea expects that this action of extending its swap agreement with the Federal Reserve should contribute to improving the foreign currency funding conditions of banks and restoring stability to the financial market in Korea.

Taking into consideration foreign currency funding market conditions, the Bank of Korea will continue to provide US dollar loans to banks through competitive auctions, using funds from the swap line.

In addition, the Bank of Korea will continue to strive for financial market stability through closer cooperation with major central banks around the world including the U.S. Federal Reserve.

Information on the actions that will be taken by other monetary policy institutions is available at the following websites:

☞ Links

* Federal Reserve

* Reserve Bank of Australia
* Banco Central do Brasil
* Bank of Canada
* Danmarks Nationalbank
* European Central Bank
* Bank of England
* Bank of Japan
* Banco de Mexico
* Reserve Bank of New Zealand
* Norges Bank 
Monetary Authority of Singapore
* Sveriges Riksbank
* Swiss National Bank

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