https://shinjukuacc.com/20200403-01/
Foreign Exchange Swap, Hidden Truth . [Explanation]
Why won't the U.S. swap with Korea for Cross Currency ?
https://www.youtube.com/watch?v=scrZ11YqVTg
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Over the past month, Korean media and politicians have been persistently talking about a long-awaited Japan-Korea currency swap.
I think that's the evidence that we feel a sense of crisis in foreign currency financing. However, yesterday, an article published in the Korean media Chosun Ilbo (Japanese version) stated that the Korean ruling party "both Democratic Party" It has been pointed out that Japan seems to be trying to make political use of the fact that Japan does not enter into a Japanese-Korean currency (Cross Currency) swap.
To be honest, it really is a risk to be involved to Korea.
Overwhelming feeling
Just a year ago, we posted this article on our website.
(From shinjukuacc on 2019/03/2710: 00 )
I tried to read the link back again myself, but there was no description such as "Export control appropriateness measures", " Wuhan pneumonia virus (Corona 19 ) disturbance", "US-Korea (Foreign Exchange) swap" etc. Aside from that, the rest is exactly the same as the current situation.
In other words, Korean media
!. Korea's foreign currency holdings exceed $ 400 billion, but not enough to prevent capital outflow
2. It is necessary to consider expanding the currency swap with Japan in response to the hard landing of the economy or the approaching currency crisis originating in China.
3. Deterioration of Korean-Japanese relations in Japanese politics has prevented the realization of Korean-Japanese Cross Currency swaps
In a tone like…, it is a situation where the resentment and misplaced anger are shown against “Japan that does not have a cross currency swap”. I feel like I've seen it somewhere before (deja vu)
In fact, cross currency swaps are one of the "old and new issues".
For example,
『JapanS-KoreaSwapDareToConsiderJapanesBeneficial1
『 Japan-Korea Swap, dare to consider the" merit of Japan』
However, as I reported, in a parliamentary questionnaire in 2014 , six years ago, over the suspension of Japanese and Korean Cross Currency swaps , Prime Minister 麻生太郎（Taro Aso,아소 다로） from the Korean side
「If Japan side want you can Korean side can okay to may borrow」
It is made clear that it was said.
* By the way, Prime Minister 麻生太郎（Taro Aso,아소 다로）also stated a similar statement in the Diet reply on March 31 .
『PrimeMinisterAsoStoodUpDueToKoreanRudeness1
『It is no surprise that Prime Minister Aso has taken off his seat due to Korean rudeness 』
However, please refer to it.
Chosun Ilbo's 「Misplaced anger」
Japan-Korea Cross Currency Swap
By the way, there is a certain "cycle" in the "Japanese-Korean Cross Currency swap aspirations" from the Korean side.
The website itself was launched in July 2016 , but since then,
Around September 2016 ...
Despite Brexit's aftereffects, a long-awaited `` $ 50 billion cross currency swap ''
Around May 2017 ...
Japan and Korea cross currency swap stimulated by Japan's agreement on cross currency swap with Thailand
Around October 2017 ...
Expiration of Cross Currency Swap due to Expiration of Cross Currency Swap
Around November 2017 ...
The long-awaited theory of cross-currency swaps between Korea and Canada when a foreign exchange swap is concluded with Canada
Around May 2018 ...
A long-awaited theory of swapping Japanese and Korean Cross Currency in line with the ASEAN Ministerial Meeting
Around October 2018 ...
Japan-South Korea Cross Currency Swap Expectations for Foreign Exchange Swap
Around March 2019 ...
Japan-Korea cross-currency swap theory in relation to Japan-Korea relations improvement theory
In many cases, the "Cross Currency Swap Long-awaited Theory" often occurs in early spring, and when global economic uncertainty rises or when some kind of crisis (such as Brexit) occurs, It seems that there is often a long-awaited swap theory.
Chosun Ilbo's resentment article
Due to the recent uprising of the Wuhan Pneumonia Virus (Corona 19 ) , the long-awaited theory of cross-currency swaps has emerged from around the middle of last month.
Rather, the Korean media seems to have come up with a kind of sorrowful "screaming" that requires "Cross Currency Swap" like every day.
This article was found in the Korean media Chosun Ilbo (Korean version).
『AnotherSafetyValveKoreaJapanCurencySwapReopened1
(From the Chosun Ilbo Korean Version on 2020/04/0220: 11 )Indeed, it is an article that makes you think, "What is it?"
It is a relatively short article with a total of less than 1200 characters, but it is quite intense.
Partly quoting while adjusting the Japanese language expression is a noble and confusing fact.
To sum up, if you summarize the linked article, this is written.
(※ Expression is organize )
2.However , Korea-Japan relations are deteriorating, including the abolition of the Korean 慰安婦's (Military Prostitutes, 군사 매춘부 ) agreement , the requisition of the requisition, and the retaliation of Japan's exports. It's a difficult outlook
3.The government and the Bank of Korea have stated that it is difficult to think that the liquidity crisis has been completely resolved in the case of the Cross Currency Swap, and expressed their intention to promote the signing of the Cross Currency Swap Agreement. Has been shown, but it turns out that Japan has not made an official proposal
….
In other words, according to an interview with the Chosun Ilbo, the Korean government has not even requested Japan for a swap due to the deterioration of Japan-South Korea relations.
慰安婦(군사 매춘부,Comfort woman=Sex Slaves = Military Prostitutes)
The comfort women were legal prostitutes at the time and were managed, operated and paid by private companies
A woman who was mainly a soldier gender on the battlefield
Generally refers to Japanese comfort women
Japanese comfort women , private company management and operation,
The designation is also used by the Korean army after the Japanese army disappeared after World War II
Synonymous women also exist in German and French troops
Korean side say 徴用工 (Forced workers)
「徴用工『朝鮮半島出身応募労働者
(Applicant workers from the Korean Peninsula)』
In Korea and China, which were under Japanese rule during World War IILitigation by former workers and their bereaved families who worked for recruitment or application by Japanese companies.
Korea side say, Former workers were treated like slaves,
Many people sue lawsuits against multiple local Japanese companies
Recruitment wage system, salaries increase and decrease depending on skill level
The current payment amount is about 110 yen, which is around 200,000 yen when converted to the current amount.
Korea side say, Japanese export retaliation
Review operation of export control to Korea
Strengthened export control of semiconductor materials to Korea for Japanese security reasons,
Bilateral conflict on trade arising from South Korea adding retaliation to it
On the Korean side, the Chosun Ilbo May 17,
"Even though it can be diverted to mass killing weapons ... South Korea triples illegal exports of strategic goods in three years."
Article titled
Why seek a "Cross Currency" swap with "Japan"
Before discussing the details of " Wanted Pneumonia Virus (Corona 19 ) Cross-Japanese Cross Currency Swap Awaited Theory", let's review the nature of the original Japanese-Korean Cross Currency swap.
A Japanese-Korean Cross Currency swap is undoubtedly " one-sided financial support from Japan to Korea " and It's nothing but madness.
For example, in general, the currency to be lent to a Cross Currency swap is the local currency “Cross Currency Swap Agreement ” ( BL CSA ) , which is the local currency, and the “Cross Currency” Swap. Swap "( USdollar bilateral currency swap agreement, USD-BSA ).
Korea currently has a total of six Cross Currency Swaps (BSA) with foreign countries. (* However, Cross Currency swaps with China may have expired.) There is no single Cross Currency swap in US dollars (Chart).
Figure2 Swaps held by Korea
(*including self-proclaimed)
|
Partner country and expiration date |
Amount and dollar equivalent |
Korean won and dollar equivalent |
|
China ( 2020/10/13 ?) |
360 billion yuan ≒ $ 50.78 billion |
64 trillion won ≒ $ 5.25 billion |
|
Switzerland ( 2021/2/20 ) |
CHF 10 billion ド ル $ 10.37 billion |
11.2 trillion won ≒ $ 9.19 billion |
|
UAE ( 2022/4/13 ) |
20 billion dirham ≒ $ 5.44 billion |
6.1 trillion won ≒ $ 5.0 billion |
|
Malaysia ( 2023/2/2 ) |
RM15 billion ドル $ 3.47 billion |
5 trillion won ≒ $ 4.10 billion |
|
Australia ( 22/2023 ) |
$ 12 billion ≒ $ 7.31 billion |
9.6 trillion won ≒ $ 7.88 billion |
|
Indonesia ( March 5, 2023 ) |
Rp115 trillion ドル $ 7.50 billion |
10.7 trillion won ≒ $ 8.78 billion |
|
Cross Currency Swap Subtotal |
$ 84.43 billion |
106.6 trillion won ≒ $ 8.75 billion |
|
Cross Currency Swap (CMIM) |
$ 3.84 billion |
― |
|
Cross Currency Swap Total |
$ 122.83 billion |
― |
|
Canada (indefinite period) * |
Unlimited amount |
― |
|
United States ( September 19, 2020 ) * |
$ 60 billion |
― |
(Source:Created by authors based on press releases from central banks in eachcountry.)
In addition, the swap with Canada and the United States is not a(Cross Currency) swap but a (Foreign Exchange) swap .
