pension fund-FX swap deal

Foreign currency authorities, NPS agree to extend US$35 bln FX swap deal

SEOUL, Dec. 15 (Yonhap) -- South Korea's foreign currency authorities said Friday that they agreed with the state pension operator to extend their US$35 billion currency swap deal by one year until the end of 2024.

In April, they agreed to open the currency swap line as part of efforts to ease market volatility.

The agreement, which will run through the end of next year, will allow the National Pension Service (NPS) to borrow up to US$35 billion from the foreign reserves of the Bank of Korea in exchange for its local currency holdings, according to the authorities.

The deal is aimed at easing dollar demand in the spot market from the NPS for its overseas investments, to help curb the excessive ups and downs in foreign exchange rates.



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