Korea, foreign exchange swap
When our Korea were difficult ,
the country that hit the back of the head,
A situation where you want to cry and help
If you conclude a cross currency swap with Japan
When everything is settled, the Korean asserts !
2020/03/24
U.S. Fed revived as "temporary measure" on March 19 local time
" US-Korea 'foreign exchange' swap "
For some reason,
it continues to misreport " U.S. Korea 'Cross Currency' swap, "
I just introduced the topic, but I understand that why.Bank of Korea is a Korean language website,
This is because this agreement is clearly erroneously described as "Cross Currency Swap".
In addition, it is the first thing that it is not listed on the English version website .
Foreign exchange swaps and cross currency swaps
Foreign exchange swaps and cross currency swaps are different!
US Fed shocks
Nine central banks and currency authorities around the world
And the exchange of Foreign Exchange Swap
It was quite exciting.
However, I am reading reader comments etc.
"Foreign exchange swaps in the first place
What is the difference between a currency and a Cross Currency swap? "
" Cross Currency Swap
Is the difference between foreign exchange and foreign exchange swaps? "
Because many voices were asking such questions,
Rather, one of the purposes of this article was
"In the world of international financial cooperation
The difference between a foreign exchange swap and a cross currency swap "
Is to clarify.
As I mentioned earlier,
For foreign exchange swaps and cross currency swaps,
Although there is a slight fluctuation of the notation in English expression, roughly speaking,
(1) Cross Currency Swap
( Bilateral Currency Swap Agreement )
… An agreement between currency authorities to exchange currency in preparation for a shortage of foreign currencies
(2) Bilateral exchange swap
( Bilateral Liquidity Swap Agreement )
… A liquidity facility to address the shortage of foreign currency liquidity of private financial institutions
There is a difference.
More specifically, cross currency swaps
(1) -① Agreement to exchange local currencies
( Bilateral Local Currency Swap Agreement )
(1) -② Agreement to exchange local currency and key currency (especially US dollars)
(For US dollar swaps,
If you dare translate it into English, is it “ Bilateral US Dollar Swap Agreement” ? )
(1) -③ Cross Currency Swap Agreement
(Dare you translate it into English, " Multilateral Currency Swap Agreement ? " )
So, when it comes to swaps in the world of international financial cooperation,
This also means that there are about four types of swaps.
Misreporting Korean media
Well, why is this website
"Difference between foreign exchange swap and cross currency swap"
Speaking of whether you are particular about
Foreign exchange swaps and cross currency swaps
Because the functions and roles are quite different in
Also, it is generally not possible to confuse their uses.
Nevertheless, a few days ago,
"Liquidity swap line" (or foreign exchange swap)
It continues to misrepresent "Cross Currency swaps."
Originally, it was called a "Cross Currency Swap".
If you really get the "strongest tool",
The downturn in exchange rates seems to converge
(Actually, in October 2011,
Prime Minister 野田佳彦 (Yoshihiko Noda) at the time
When you enter into a huge currency (Cross Currency) swap with Korea,
The Korean won escaped the crash.)
But,
In the foreign exchange market last Friday, the Korean won
Although there was a phase of returning to the $ 1 = 1230 won level,
In the end, I returned to the $ 1 = 1250 won level.
Since then, I don't know what it will do
However, the currency markets have remained volatile, at least as of last week.
Korean media
Despite the massive misrepresentation of "Cross Currency Swap,"
Financial markets
"This is a Cross Currency swap
Not a foreign exchange swap, right? "
It seems like that as a point of view that sees through.
(* However, on September 15 , 2008 ,
US investment banking giant Lehman Brothers went bankrupt,
During the so-called "Lehman shock",
Since the US-Korean exchange swap was signed on December 12 , 2008 ,
For a while, the price of the Korean won was unstable. )