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2025-12-15 17:24:06
[Korean Won Defense Escalates: Central Bank Joins Forces with Pension Fund to Launch Currency Defense] ⑴ The Bank of Korea and the National Pension Service (NPS) have agreed to extend their foreign exchange swap agreement for another year, until the end of 2026. ⑵ This move aims to stabilize the USD/Korean won market, where the won is currently hovering near a 16-year low and facing significant depreciation pressure. ⑶ The government statement also emphasized that the NPS will maintain its existing foreign exchange hedging strategy to coordinate responses to market volatility. ⑷ This action demonstrates that South Korean official institutions are jointly building a defense against excessive currency depreciation by strengthening liquidity support and strategic coordination. ⑸ The agreement extension directly provides potential dollar liquidity support to the foreign exchange market, helping to mitigate expectations of one-sided market volatility and representing a key policy measure to address current exchange rate pressures.
