Bank of Korea begins its first round of dollar injections using U.S. currency swap
The Bank of Korea offered 8.72 billion dollars to banks on Tuesday in its first round of dollar injections using a currency swap line with the United States Federal Reserve.
After a 30-minute online auction held from 10 a.m., local banks and other financial institutions were provided with 800 million dollars in seven-day debt and 7.92 billion dollars in 84-day loans.
The central bank said bids undershot the 12 billion dollars it initially planned to inject, assessing that the dollar crunch has eased to a considerable extent.
Successful bidders will receive dollars on Thursday.
This is the first batch of money from South Korea's 60 billion dollar currency swap agreement that was reached with the U.S. on March 19, to help tackle a shortage of dollars and a plunge in the Korean currency due to the global spread of COVID-19 and a plunge in oil prices.■
<Photo: Yonhap News>
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