Bank of Korea to channel dollar liquidity this week from currency swap with Fed

SEOUL, March 25 (Reuters) – South Korea’s central bank plans to inject dollars into local financial markets this week using a currency swap with the U.S. Federal Reserve to help ease a growing dollar shortage in onshore markets, a senior bank official said.

The Fed said on March 19 the Bank of Korea is one of nine central banks it will sign new dollar swap lines with in a coordinated action to prevent the coronavirus epidemic from causing a global economic rout. (Reporting by Cynthia Kim; Editing by Muralikumar Anantharaman)