BOK to retrieve dollar funds from banks

SEOUL, Aug. 3 (Yonhap) -- South Korea's central bank said Monday it will complete
this week retrieving the dollar funds it gave to local banks to help them ride
out a foreign-currency crunch.

The Bank of Korea (BOK) said it plans to recollect from local lenders the final
batch of US$600 million, which comes due on Thursday.
The BOK started retrieving dollar funds in late January after it injected a total
of $10.27 billion into the banking system from its foreign exchange reserves in
the October-December period.
The country's recent sizable dollar inflows, however, have helped bolster foreign
currency liquidity, according to the BOK.
"The central bank has been gradually recovering the dollar funds due to large
current-account surpluses, continued foreign stock buying as well as a pickup in
banks' foreign currency condition," the BOK said.
The central bank also plans to gradually recoup dollar lending issued from a $30
billion currency swap line with the U.S., depending on market conditions.
The BOK extended a combined $16.35 billion to local banks between
December-January. It began recollecting the funds in March and the remaining $8
billion comes due within two months.
pbr@yna.co.kr
(END)