Foreign exchange authorities say they will increase the cap on foreign exchange swaps with the National Pension Service by $15 billion to $65 billion and extend the contract deadline by another year to the end of next year.
Foreign exchange swaps are raised first from foreign exchange reserves and later returned when the National Pension Service needs dollars to purchase overseas assets, which have a stabilizing effect on the foreign exchange market.
The National Pension Fund Management Committee has also decided to extend the deadline for raising the foreign exchange hedge ratio by up to 10% until next year.
When the won-dollar exchange rate level is high, foreign currency hedging helps stabilize the foreign exchange market by selling some of its overseas assets in advance through forward exchange.
The financial authorities also asked major banks to actively consider flexible adjustments in corporate foreign currency settlements and loan maturities.
Adjustment of foreign currency settlements and the maturity of foreign currency loans will ease the burden of foreign exchange supply and demand by eliminating companies from having to raise foreign currency at higher exchange rates at the end of the year.
※ 'Your report becomes news'
[Kakao Talk] YTN Search and Add Channel
[Phone] 02-398-8585
[Mail] social@ytn.co.kr
[Copyright holder (c) YTN Unauthorized reproduction, redistribution and use of AI data prohibited]
Economy
More- Tax investigation, economic conditions, 'year-old scale'...Expanded appraisal of ultra-high-priced real estate
- Trump's response to 'trade barriers'...Hyundai Steel "actively considering investment in U.S. steel mills"
- "Parents use the time limit"...Instagram's 'Teenage Account' will be applied in Korea from today.
- Stock market rises due to 'foreigners and institutions' buying...The exchange rate is 1,430 won.