SEOUL (Reuters) – South Korean President Yoon Suk-yul and US President Joe Biden are expected to discuss currency exchange, Yonhap News Agency reported, citing a senior official in Yun’s office.
Re-establishing currency swaps with the US may be a way to counter the continued decline of the color against the dollar, which has reached about 17% this year, to make it the worst-performing currency in Asia, with the exception of the Japanese yen.
Washington and Seoul officials are arranging a meeting of leaders on the sidelines of the United Nations General Assembly next week in New York.
The $60 billion currency swap agreement, which was signed in March 2020 by the South Korean Central Bank and the US Federal Reserve, as an emergency step to stabilize the markets, expired at the end of last year.
Such a swap would allow South Korea to borrow a certain amount of US dollars for a predetermined period and rate, in exchange for the won, in order to solve dollar liquidity difficulties.