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SKorea, US agree to supply FX liquidity, if needed
SKorea, US agree to supply FX liquidity, if needed

Seoul, July 19 (TIWN) South Korea and the United States agreed on Tuesday to implement liquidity facilities, if needed, as part of efforts to cooperate in stabilising the foreign exchange market.

Seoul also expressed its willingness to join a proposed price cap on Russian oil, after Finance Minister Choo Kyung-ho and US Treasury Secretary Janet Yellen held talks in Seoul to discuss global and bilateral economic issues.  Choo and Yellen agreed to closely cooperate in helping stabilise the foreign exchange market, Yonhap news agency reported quoting Seoul's finance ministry.  The two sides "have the ability to implement various cooperative actions, such as liquidity facilities, if necessary," the ministry said in a statement after the talks.  The move appears to leave open the possibility of opening a currency swap line between South Korea and the US, if needed.  South Korea's US$60 billion currency swap line with the US expired at the end of last year. The Bank of Korea and the Federal Reserve signed the swap facility in March 2020 to ease market routs caused by the pandemic and had extended the deal three times.  Volatility in the financial market has heightened, as demand for the dollar increased due to the Fed's aggressive monetary tightening. The won has slid more than 9 per cent against the US dollar so far this year.

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