Financial committee chairman in Korea hopes to resume swapping wwwwwwwwwwwwwwwwwwww

Financial committee chairman in Korea hopes to resume swapping wwwwwwwwwwwwwwwwwwww ▲ Eun Seong-soo, Chairman of the Financial Committee. (Photo = Yonhap News) In the face of a sharp confrontation in Japan's export control provocations, financial chairman Eun Sung recently revealed his willingness to resume bilateral currency swaps. I have just been appointed as the chairman of the Financial Committee from the head of the Korea Import and Export Bank). Since the “trust” between the countries concerned is the foundation, there is little chance of a successful Korea-Japan currency swap. According to the Bank of Korea on the 11th, Japan has concluded bilateral currency swap agreements with 7 countries, including Canada, Switzerland, and China, and a multi-party currency swap agreement with Chiang Mai Initiative Multi (CMIM). The contract with Canada has no maturity and no limit. The total amount of currency swaps with limits set is about $ 130 billion when converted into dollars. Foreign currency liquidity is guaranteed in the event of an emergency such as the outbreak of the financial crisis, because we can borrow the target country currency by leaving our South Korean won at least one third of the foreign exchange holding level of $ 400 billion . In addition, the conclusion of currency swaps with major countries themselves improves the nation's ability to pay and increases the national creditworthiness. The Canadian and Swiss francs are the six major currencies used to measure the dollar index, which is the currency value indicator of the US dollar. The amount of currency swaps currently concluded is not small. Even so, the importance of the current contract currency is relatively low compared to the US dollar and Japanese yen, which are essential for our trade. This is where financial authorities are sorry. In 2011, Eun Sung-soo, the chairman of the Finance Committee, was the main player who extended and extended the Korea-Japan currency swap limit to 70 billion dollars in 2011 when serving as director of the International Monetary Policy Bureau of the Department of Planning and Finance. At that time, Korea-China currency swaps expanded to $ 56 billion. Chairman Eun said at the Diet hearing, “There is China in the swaps promoted at that time, so it should be concluded with Japan.” However, considering domestic and foreign circumstances, the possibility of resuming Korean-Japanese currency swaps is not high. Korea-Japan currency swaps, which started at $ 2 billion in 2001 and expanded to $ 70 billion, decreased in size after 2012 when President Lee Myung-bak visited Dokdo (Japanese name: Takeshima) Followed by complete completion in 2015. Since 2016, discussions on re-conclusion have been made from time to time, but Japan declared a breakup with “political reasons” such as the installation of a comfort girl image in front of the Japanese Consulate in 2016. Taro Aso, Minister of Finance of Japan, made a daily statement at the beginning of 2017 saying, “You may not be able to return the money you borrowed from Korea.” Most of the opinions are that the Japanese government, which has recently mobilized the non-diplomatic rhetoric of “untrusted” and provoked export restrictions, is not willing to conclude. The weakness of the international value of the Korean won compared to the Japanese yen is another reason why Japan cannot lead to re-consultation. The Korean government also feels that there is no reason to ugly Japan because of national sentiment. The fact that the Japanese yen never actually entered the country during the Korean-Japanese currency swap period is a questionable part of the urgency and effectiveness. On the contrary, there is only one example of swap activation, and the most practical is the Korean / US currency swap. During the global financial crisis, Korea-US currency swaps were signed on a scale of $ 30 billion between 2008 and 2010. With this, dollar support was provided by the US Federal Reserve, which eased domestic financial instability. At that time, the “Atonement” inspired by the global financial crisis, including the Lehman Brothers bankruptcy, the US supported the dollar through currency swaps with Brazil, Mexico and Singapore. However, the authorities say that Korea-US currency swaps are unlikely to be re-contracted. The US does not feel the need for currency swaps in addition to major axis currencies such as the euro, yen, British pound, Canadian dollar, and Swiss franc. A South Korean bank official said, “The US does not always need currency swaps with non-developed countries unless they are in a special situation like the global financial crisis. As a result, we are expanding the range of currency swaps with other countries. " Source: Uncut News (Korean) Eun Sung mentions 'Korea-Japan currency swap' could be reopened * Some excerpts from the link below. Continue with the source https://www.nocutnews.co.kr/news/5212434 document.write(” + ”); Related article document.write(” + ”);

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