BOK to deliver additional $4.4 bln to banks via U.S. currency swap this week
By Byun Duk-kun
SEOUL, April 7 (Yonhap) -- The Bank of Korea (BOK) said Tuesday that it will offer US$4.41 billion to local banks this week in its second round of dollar funding using its bilateral currency swap arrangement with the U.S. Fed that is designed to help prevent a foreign exchange liquidity crunch.
The central bank held an online auction to provide up to $8.5 billion in seven-day debt and 84-day loans.
Bids undershot the BOK target of $7 billion in 84-day loans and $1.5 billion in seven-day loans.
"A total of $4.41 billion has been sold as the result of bidding," the BOK said in a statement. The central bank construed this as showing a local dollar crunch has eased to a considerable extent.
Successful bidders will actually receive dollars on Thursday.
The BOK delivered $8.72 billion last week in its first injection of U.S. dollars using the U.S. currency swap line.
The bilateral currency swap arrangement, signed late March, is worth $60 billion.
The local currency began to fluctuate against the U.S. greenback early February when South Korea began to report a mass number of daily COVID-19 infection cases.
The won-dollar exchange rate dipped to a 10-year low of 1,285.70 won per dollar on March 19, sharply down from 1,158.10 won per dollar posted Jan. 20, the day South Korea reported its first confirmed case of COVID-19.
The local currency closed at 1,229.30 won against the dollar on Monday.
bdk@yna.co.kr
(END)
-
(News Focus) Display, electronics makers dealt blow by COVID-19 lockdowns in China
-
BTS to meet Biden at White House to discuss anti-Asian hate crimes
-
(URGENT) Russian, Chinese warplanes enter S. Korea's air defense zone without notice: JCS
-
Multiple Russian, Chinese warplanes enter KADIZ without notice: JCS
-
Premier League Golden Boot winner Son Heung-min receives hero's welcome home
-
(LEAD) Multiple Russian, Chinese warplanes enter KADIZ without notice: JCS
-
(News Focus) Display, electronics makers dealt blow by COVID-19 lockdowns in China
-
With historic Golden Boot, Son Heung-min cements case as greatest S. Korean footballer ever
-
(URGENT) Russian, Chinese warplanes enter S. Korea's air defense zone without notice: JCS
-
(LEAD) Supreme Court rules against peak wage system
-
S. Korean midfielder Hwang Hee-chan to enter military training after 2 friendlies in June
-
S. Korean volunteer fighter in Ukraine returns home with injuries
-
Former rhythmic gymnast Son Yeon-jae to wed in August
-
DP interim chief apologizes over her remarks on party reform
-
Supreme Court orders life sentence for man convicted of raping, killing 20-month-old baby