Chosun Daily reports "swap with US Japan" while KRW is sold
South Korean won developing 1200 lines of final battle
2020/02/08
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An article was published stating, "Conclude a currency swap with Japan and the United States immediately."
Even so, there is a statement that suddenly causes discomfort when reading the article,
In addition, South Korea have not yet resolved any concerns between Japan and Korea created by the Korean side.So, as one of the Japanese voters,
Hey, and "should provide a currency swap"
It is sure that the atmosphere is hard to say.
Chosun Ilbo “Swaps with US and Japan”
One of the issues we have been watching on our website for several days is the lack of dollars in neighboring countries.
Earlier
' Moon G20 Video Conference Proposal to US O'Brien' Very Good Proposal '
Now, it is published in the Korean media "News 1 " (Korean version)
The long-awaited theory of currency swap (or exchange swap) is seen in Korean media,
Was introduced.
In that case, I forgot to introduce,
This is the next article from the Korean media, Chosun Ilbo (Japanese version).
「S-KoreaCrisisQuicklyEnterIntoSwapWithUS-Japan
Chosun Ilbo's article title goes even further
It says "US and Japan and a currency swap."
The writing of the article is like this.
"The United States Federal Reserve ( Fed ) on Tuesday said zero interest rates and quantitative easing,
We took urgent action to reduce the currency swap interest rate. ' '
In this article, "Currency swap interest rate reduction"
But this is the website
But as I introduced,
"Currency swap" means
It is a mistake of "foreign-exchange swap".
The six major central banks Japan, the United States, Europe, the United Kingdom, Switzerland and Canada
We currently hold foreign-exchange swaps with unlimited duration and value.
If you are a central bank participating in this network,
It is a mechanism that allows you to withdraw each other's currency and lend it to domestic banks.
For example, when a private bank in Japan needs US dollars,
This bank pledged collateral with the Bank of Japan,
The Bank of Japan pledged yen funds as collateral to the US Fed (strictly, the Federal Reserve Bank of New York)
You can borrow dollar funds and lend it to a private bank.
In other words, Japan, US, Europe, UK, Switzerland, Canada
For private financial institutions in six countries and regions,
With collateral, you can borrow short-term in six currencies
(However, for liquidity supplies outside the US dollar,
There seems to be almost no use record ...).
I don't care,
In this article about the foreign-exchange swap,
" On the same day, the Fed
Currency swap agreements in the European Union ( EU ), the United Kingdom, Canada and Switzerland
He said he would lower the swap rate on the central bank by 0.25 %. "
There is
However, is it bad that you feel bad intention when you overtake Japan from the text?
South Korea picked up from FX swap alliance
That aside, the Chosun Ilbo was included in the article,
"If zero interest rates and quantitative easing are domestic measures primarily targeting US companies and financial markets,
Cuts in currency swap rates make it easier for major economic allies to raise dollars
This is a measure for overseas.
However, South Korea does not have a currency swap agreement with the Fed
The benefits are difficult to receive . "
(* Underline is processed by quoter)
However, it is difficult to get the benefit.
"It doesn't matter Korea."
Because the Bank of Korea
It is not participating in this "foreign-exchange swap agreement".
And the Chosun Ilbo develops surprising claims.
" Experts say," To prevent financial and currency market crises,
We should conclude a currency swap agreement with the United States and Japan as soon as possible. "
(Omitted) 鄭徳亀（Jeongdeok-gu,정덕구）
"If you are in a hurry now,
You can sign a currency swap agreement . ' "
(* Underline is processed by quoter)
Despite intentionally overtaking Japan from the "foreign-exchange swap agreement",
Why is Japan entangled with "US-Japan"? I do not understand.
In addition, the Chosun Ilbo quotes the WSJ editorial as an example and states as follows.
"The Wall Street Journal ( WSJ ) is a recent editorial,
"For stability in financial markets, the Fed has
You should enter into a currency swap agreement with them. "
Authorities such as the Korea Ministry of Planning and Finance and the Bank of Korea have agreed on currency swap agreements.
"We are working to strengthen our financial safety net."
And commented. "
「WSJ-FRB-ForeignCentralBankForeignExchangeSwap1
WSJ "FRB는 외국 중앙 은행과 통화 스왑 연장을"
In this format, authorities such as the Korean government and the Bank of Korea
At least for currency swaps and foreign-exchange swaps with Japan and the United States
No specific negotiations seem to be taking place.
South Korean swaps are surprisingly substantial
Well, as always,
Owned by Korea (including those who claim to be)
Make a list of swaps (chart).
Figure: Swaps held (including those that claim to be) by Korea
|
Partner country and expiration date |
Amount and dollar equivalent |
Korean won and dollar equivalent |
|
China ( 2020/10/13 ?) |
360 billion yuan ($ 5.14 billion) |
64 trillion won ($ 51.63 billion) |
|
Switzerland ( 2021/2/20 ) |
CHF 10 billion ($ 10.52 billion) |
11.2 trillion won ($ 9.40 billion) |
|
UAE ( 2022/4/13 ) |
20 billion dirhams ($ 5.44 billion) |
6.1 trillion won ($ 4.92 billion) |
|
Malaysia ( 2023/2/2 ) |
15 billion ringgit ($ 3.46 billion) |
5 trillion won ($ 4.30 billion) |
|
Australia ( 22/2023 ) |
$ 12 billion ($ 7.3 billion) |
9.6 trillion won ($ 7.74 billion) |
|
Indonesia ( March 5, 2023 ) |
Rp115 trillion ($ 7.6 billion) |
10.7 trillion won ($ 8.63 billion) |
|
Bilateral Swap Subtotal |
$ 8.573 billion |
106.6 trillion won ($ 8.60 billion) |
|
CMIM |
$ 3.84 billion |
|
|
total |
$ 124.13 billion |
|
|
Exchange swap with Canada |
Unlimited period, amount |
― |
(Source: Created by the author with reference to the announcement by the Bank of Korea.
(Refer to the WSJ market column at 4:20 pm on March 17 , Japan time)