SEOUL (Reuters) – South Korea’s National Pension Service (NPS) and the country’s central bank have agreed to extend their $35 billion foreign exchange swap programme until the end of 2024.
The welfare ministry, which oversees the pension fund’s investment policies, and the Bank of Korea (BOK) both confirmed the agreement in a statement on Friday.
The NPS will keep its limit on foreign exchange hedging to a maximum 10% of total overseas assets throughout next year, which was raised from 0% in December 2022, the ministry said.
The BOK said there remains a need to have a market stabilising tool in hand and said it will consider increasing the amount of the swap line if necessary.
The announcement comes a week after Reuters’ reported that they were in talks to extend the programme.
(Reporting by Jihoon Lee; Editing by Ed Davies)
