ID :
27350
Thu, 10/30/2008 - 09:58
Auther :
Shortlink :
https://www.oananews.org//node/27350
The shortlink copeid
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 in South Korea to
discuss the currency swap issue with their South Korean counterparts, a separate
source said on condition of anonymity.
South Korea has been trying to secure more liquidity as global capital markets
are in a slump due to deepening woes over the U.S.-sparked financial turbulence.
The government is grappling to stabilize its wobbling financial markets with a
raft of measures including US$100 billion worth of state guarantees for overseas
debts owed by cash-strapped local banks.
Banks and companies are finding it difficult to secure enough dollars to service
their debts and pay for business activities. Increased dollar demand has put
downward pressure on the local currency, with the won losing around 34 percent so
far this year.
Rumors circulated earlier that Seoul was seeking a currency swap with Washington
as part of efforts to bring calm to the financial markets, but officials
continued to dismiss the reports.
According to ministry sources, the government initiated dialogue over the
currency swap with the United States, and has received a "positive" response.
(END)
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 in South Korea to
discuss the currency swap issue with their South Korean counterparts, a separate
source said on condition of anonymity.
South Korea has been trying to secure more liquidity as global capital markets
are in a slump due to deepening woes over the U.S.-sparked financial turbulence.
The government is grappling to stabilize its wobbling financial markets with a
raft of measures including US$100 billion worth of state guarantees for overseas
debts owed by cash-strapped local banks.
Banks and companies are finding it difficult to secure enough dollars to service
their debts and pay for business activities. Increased dollar demand has put
downward pressure on the local currency, with the won losing around 34 percent so
far this year.
Rumors circulated earlier that Seoul was seeking a currency swap with Washington
as part of efforts to bring calm to the financial markets, but officials
continued to dismiss the reports.
According to ministry sources, the government initiated dialogue over the
currency swap with the United States, and has received a "positive" response.
(END)
