BUSINESS

[Monitor] S. Korea to seal landmark currency swap deal with Switzerland

By Korea Herald
  • Published : Feb 11, 2018 - 16:10
  • Updated : Feb 11, 2018 - 16:10
South Korea’s central bank, the Bank of Korea, announced Friday it would sign a currency swap deal on Feb. 20 with Switzerland‘s counterpart, the Swiss National Bank.

The agreement will be signed in Zurich, Switzerland.

The deal is expected to allow the Korean won and Swiss franc to be purchased and repurchased between the two central banks, as large as 10 billion Swiss franc ($10.6 billion). The maturity period will be three years and can be extended upon an additional bilateral agreement.

This came after the BOK extended currency swaps with the People’s Bank of China in October 2017 and agreed on a standing liquidity swap arrangement with the Bank of Canada in November 2017. The Swiss franc will mark the third key currency to be provided to Korea through a bilateral currency swap deal following the Chinese yuan and the Canadian dollar.