swap

South Korea has already recovered the remaining $450m USD loans extended to local banks, a day after the Fed announced closure of its temporary global liquidity-providing swap scheme by February 1, 2010.

Including the $450m, the BOK has recovered the full amount from the swap arrangement, which was worth $16.35bn. The Fed originally set a $30bn USD currency swap limit with the Bank of Korea on October 30, 2008, and has extended the deadline twice. BOK officials say the agreement helped to stabilise the local currency but that its closure will have “little impact” on Korean financial markets