The Finance Minister of South Korea, Koo Yun-Cheol, said that the country is negotiating with the U.S. numerous modalities to establish a bilateral foreign exchange FX swap line as part of a trade agreement to tame the effect of a proposed U.S. investment into the domestic currency market.
He further responded to a query by a lawmaker regarding the necessity of requesting a conditional swap line, in case not than an unlimited one.
Koo estimated that the upper limit of the direct investment that the U.S. and South Korea will be able to make in a year is about $20 billion without depleting the central bank reserves, in comparison to $350 billion in a deal that was agreed upon in July.
