South Korea: US-Korea Swap Ends within 2021:
-Crisis of outflow of Korean funds-
Bank of Korea (Central Bank)
It is a new cause of anxiety for the Korean economy.
It has been decided that the currency swap signed by the Bank of Korea with the Fed will end within 2021.
US raises interest rates three times in 2022:
The US plans to raise rates three times next year.
Concerns about the collapse of the won and the outflow of South Korean funds remain.
If the rate hike actually starts,
Money flows into the dollar,
The won depreciated against the dollar,
South Korean funds flow out of the country.
The US ambassador to Korea remains vacant.
Has South Korea been abandoned by the United States?
Yonhap News:
South Korea has signed a “$ 60 billion swap agreement with the United States in March 2020.”
The deadline is the end of September 2021, but the extension was repeated.
A total of 19,872 million dollars (2.26 trillion yen) was supplied to South Korea.
It is said that it was repaid in July last year.
US Ambassador to Korea is vacant:
There is a disturbing atmosphere in the United States and South Korea over the appointment of the US Ambassador to Korea.
On December 18, Rahm Emanuel was appointed as the US Ambassador to Japan.
Ambassadors were appointed one after another in Australia and India.
However, the selection of US ambassadors to Korea is still undecided.
Ryukoku University
Professor Sotetsu Li
The economically unstable South Korea should have extended its swap with the United States.
Mr. Moon’s judgment ：
As you can see from the failure to deal with the corona, political speculation is prioritized over science.
It’s just getting away from the United States.
–zakzak: Yukan Fuji
https://www.zakzak.co.jp/article/20211229-2KXDJPHU5RIXRIJDIJW4EK7J7U/
S.Koreas $60 bn currency swap contract with US to expire on Dec 31
The BOK said that
the expiration of the currency swap deal will not have much impact on Seoul’s foreign currency marketgiven the improved liquidity and other financial conditions, such as a sufficient amount of foreign reserves.
The central bank
had earlier said that its foreign reserves came to $463.91 billion as of end-November.The currency swap deal
marked the second of its kind signed with the US after a won-dollar swap line signed in October 2008 at the height of the global financial crisis.Except the deal with the US, South Korea has bilateral currency swap arrangements
with eight countries, including Australia, Canada and China. –IANS