FX authorities, NPS agree to enhance FX swap deal to US$50 bln

South Korea's foreign currency authorities said Friday that they agreed with the state pension operator to raise the upper limit of their currency swap deal to US$50 billion from the current $35 billion to better cope with market volatility. Late last year, the two agreed to extend the currency swap deal by the end of 2024 after opening the line in April last year as part of efforts to ease market volatility. With the enhanced upper limit, the National Pension Service (NPS) can borrow up to $50 billion from the foreign reserves of the Bank of Korea in exchange for its local currency holdings, according to the authorities. The deal is aimed at easing dollar demand in the spot market from the NPS for its overseas investments to help curb the excessive ups and downs in foreign exchange rates. Source: Yonhap News Agency