Korea and Canada clinched a standing bilateral currency swap deal that will help expand financial exchanges between the two countries, Seoul’s central bank said on Nov. 16.
Bank of Korea Gov. Lee Ju-yeol and his Canadian counterpart Stephen S. Poloz signed the agreement at a ceremony at the Bank of Canada’s head office in Ottawa.
The liquidity swap arrangement does not stipulate any ceilings.
“The arrangement allows for the provision of liquidity in each jurisdiction to support domestic financial stability should market conditions warrant,” the BOK said in a statement.
“This effectively enables the Bank of Canada to provide Canadian dollars to the Bank of Korea and to provide liquidity in Korean won to financial institutions in Canada, should the need arise. Likewise, the Bank of Korea can provide Korean won to the Bank of Canada, as well as provide liquidity in Canadian dollars to financial institutions in Korea.”
By Alex Lee and newswires (firstname.lastname@example.org