Bank of Canada and Bank of Korea sign currency swap agreement
The Bank of Canada and the Bank of Korea today announced a standing bilateral liquidity swap arrangement, effective immediately. The arrangement allows for the provision of liquidity in each jurisdiction to support domestic financial stability should market conditions warrant. This effectively enables the Bank of Canada to provide Canadian dollars to the Bank of Korea, and to provide liquidity in Korean Won to financial institutions in Canada, should the need arise. Likewise, the Bank of Korea can provide Korean Won to the Bank of Canada, as well as provide liquidity in Canadian dollars to financial institutions in Korea.
Governor Stephen S. Poloz and Governor Juyeol Lee signed the agreement establishing the swap arrangement at a ceremony at the Bank of Canada’s head office in Ottawa, Canada.
This announcement is also available on the Bank of Korea website.