The foreign exchange authorities (Ministry of Economy and Finance and Bank of Korea) have agreed with the National Pension Service (NPS) to increase the foreign exchange swap (FX swap) transaction limit from the current $35 billion to $50 billion by the end of 2024.
This decision is aimed at strengthening the response capacity of both institutions, taking into account their experience in effectively managing increased FX market volatility through FX swap transactions and the ongoing overseas investments by the NPS.
The FX authorities believe that the FX swap transactions with the NPS can absorb the spot FX purchase demand of the NPS during times of market instability, contributing to alleviate supply-demand imbalances in the FX market.
Please refer to the attached files.
