Central Bank of Korea: information with the Fed shared currency swap agreement information

Zhongxin Jingwei, September 26. According to the Yonhap News Agency, on the 26th, the president of the Bank of Korea (central bank) Li Changzheng said on the South Korean and American currency exchange agreements that as the Federal Reserve Chairman Powell said, South Korea and the United States were sharing information on related matters. Essence

According to reports, Li Changzheng made the above statement when he attended the Plenary Session of the Congress Planning Committee on the same day. Li Changzheng said that according to the internal standards of the Federal Reserve's currency swap agreement, the relevant matters were discussed only when the global market crisis occurred in the global market. Han and the United States signed the currency exchange agreement twice.

The analysis believes that the above speeches can be interpreted. Rather than saying that South Korea and the United States are conducting policy consultations on the currency swap agreement, it is better to say that the Fed is closely watching the liquidity of the US dollar market and sharing related information with South Korea.

It is reported that Li Changzheng also emphasized that theoretically, there is no need to sign a currency exchange agreement. When the market situation does not meet the conditions of the Federal Reserve (required to sign the currency swap agreement), the United States is required to sign the currency swap agreement in advance, but it will have a negative impact.

In addition, Li Changzheng also hinted that the central bank's possibility of further interest rate hikes.

The report pointed out that Li Changzhang said that the Federal Reserve's endpoint interest rate forecast this year was 4.4%, which was higher than previous forecasts, and the interest rate forecast of the end of next year rose to 4.6%. Due to the changes in the market interest rate of the Fed's endpoint, the Bank of Korea will decide to raise interest rates after discussing its influence on domestic prices, economic growth, financial and foreign exchange markets.

Speaking of prices, Li Changzheng said that Korean prices are expected to reach the apex in October, but the decline may slow down due to the depreciation of the Korean won. In the future, the increase in price will be affected by the economic situation of exchange rates and major developed countries. It is expected to maintain an increase of about 5%before the first half of next year. (Zhongxin Jingwei APP)

Pay attention to the official WeChat public account of JWVIEW (JWVIEW) to get more elite financial information.

- END -