South Korea and the United States have reached an agreement on managing foreign exchange risks under their $350 billion currency swap arrangement, a move aimed at bolstering financial stability amid global economic uncertainties. Officials from both countries have been negotiating for months to align their positions, particularly on how to handle potential volatility in the foreign exchange market. The agreement includes measures to mitigate risks from sudden currency fluctuations, ensuring smoother operations for businesses and financial institutions that rely on cross-border transactions. This development reflects a deepening of economic cooperation between Seoul and Washington, emphasizing both countries’ commitment to maintaining stable financial systems in the region. Analysts note that the agreement could help prevent excessive short-term volatility in the won-dollar exchange rate, which has been a concern for exporters and investors. By creating a more predictable financial environment, the swap arrangement is expected to support trade, investment, and overall economic resilience, while signaling to global markets that South Korea and the U.S. are working closely to manage regional economic risks. (ICE SEOUL)

Fonte notizia: The Korea Herald