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| ▲ South Korean Finance Minister Choo Kyung-ho (L) shakes hands with U.S. Treasury Secretary Janet Yellen ahead of their meeting in Seoul on July 19, 2022. (Pool photo) (Yonhap) |
(LEAD) S Korea-US-finance chiefs
(LEAD) S. Korea, U.S. agree to supply FX liquidity, if needed
(ATTN: UPDATES with more details throughout)
SEOUL, July 19 (Yonhap) -- South Korea and the United States agreed Tuesday to implement liquidity facilities, if needed, as part of efforts to cooperate in stabilizing the foreign exchange market.
Seoul also expressed its "intent" to join a proposed price cap on Russian oil, after Finance Minister Choo Kyung-ho and U.S. Treasury Secretary Janet Yellen held talks in Seoul to discuss global and bilateral economic issues.
Choo and Yellen agreed to closely cooperate in helping stabilize the foreign exchange market.
The two sides "have the ability to implement various cooperative actions, such as liquidity facilities, if necessary," the finance ministry said in a statement.
The move appears to leave open the possibility of opening a currency swap line between South Korea and the U.S., when needed.
South Korea's US$60 billion currency swap line with the U.S. expired at the end of last year. The Bank of Korea and the Fed signed the swap facility in March 2020 to ease market routs caused by the pandemic and had extended the deal three times.
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