S. Korea offers ‘unlimited’ FX swap with US
(MENAFN) On Monday, a regional news agency reported that South Korea has suggested setting up an "unlimited" currency swap with the US as prospects for progress in the ongoing trade negotiations between two nations remain slim.
A news agency mentioned the nation put forward the proposal in recent discussions aimed at protecting its currency to defend its currency in follow-up negotiations on a tariff agreement which was reached between the two nations in late July.
Under the framework deal, South Korea vowed to invest 350 billion dollars in the US in swap for Washington sharply reducing tariffs on South Korea from 25% to 15%.
The majority of the intended investment will be in the shape of loans and credit guarantees, but Washington is requesting that a greater share of the investment be delivered as direct cash.
The country has raised alarms that substantial dollar outflows could sharply push up the won relative to the US dollar.
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