S. Korea, U.S. to sign currency swap contract: sources

SEOUL, Oct. 29 (Yonhap) -- South Korea will likely sign a currency swap contract soon with the United States in a bid to ease a dollar-funding shortage amid deepening global financial turmoil, multiple finance ministry sources said Wednesday.

The final decision will be announced later on Wednesday or early Thursday (Seoul
time) by the U.S. Federal Reserve Board when it meets to decide on its key
interest rates, a high-ranking official said on condition of anonymity, saying he
is "optimistic" about the results. He declined to elaborate.
Details on the exact scale of the currency swap have yet to be confirmed. Other
related officials said that talks are currently "underway," and that they are
"close to a deal."
A delegation from the U.S. Department of the Treasury is currently in South Korea
to discuss the currency swap issue with their South Korean counterparts, a
separate source said on condition of anonymity.
Meanwhile, the finance ministry denied a local newspaper report that the country
is seeking to apply for a currency swap with the International Monetary Fund
under a new loan architecture to be announced this week.