South Korea–US currency swap renewed
2020.03.19
Temporary dollar swaps including the Bank of Korea were re-established.
Federal Reserve announcement date. Distinguish it from actual funding-auction dates.
Conditions at the time
The pandemic shock increased pressure on global dollar-funding markets, threatening credit supply.
How events unfolded
The Federal Reserve announced temporary dollar swaps with nine central banks, including the Bank of Korea.
Stakeholders and impacts
The Bank of Korea, the Federal Reserve and domestic financial institutions needing dollars were linked through this supply channel.
Information available at the time
The Bank of Korea’s ceiling was 600 hundred-million US dollars, with an initial term of at least six months.
Findings confirmed later
The announced ceiling differs from an amount immediately used in full or accumulated as foreign-exchange reserves.
Alternative interpretations and limitations
Swaps are funding-liquidity instruments and do not guarantee a particular level for the won.
Source-based context and interpretation
Temporary lines including the Bank of Korea opened a central-bank channel for domestic dollar supply. The Fed's follow-up reported usage near zero as markets stabilized, while temporary arrangements were extended through the end of 2021. Availability and actual borrowing were separate. ASSETCASTING interpretation: Capacity is neither routinely spent FX reserves nor a guarantee of a particular exchange rate. Drawings depend on demand and terms. Low usage can coexist with valuable insurance; high usage does not automatically mean sovereign insolvency.
Evidence coverage through 2021-09-29 · Sources checked 2026-10-14
Related events and periods1
- Pandemic shocks and large-scale policy support
An event or period whose recorded start falls within this editorial interval. This does not establish that it caused or represents the characteristics of the era, nor guarantee that the entire period falls within the interval.
Historical events do not guarantee future recurrence or investment performance.