South Korean Leader Stresses Need for Currency Swap Deal with U.S. During Meeting with Treasury Secretary

Deep News07:10

South Korean President Lee Jae-myung, during a meeting with U.S. Treasury Secretary Scott Bessent at the presidential office on Wednesday, emphasized the necessity of establishing a currency swap agreement between the two nations, according to a report from Maeil Business Newspaper citing an anonymous government official.

In response, Secretary Bessent noted that Kevin Warsh is set to assume the role of Federal Reserve Chair, indicating that matters related to currency swaps should be negotiated and finalized between the Federal Reserve and the Bank of Korea.

President Lee's remarks stem from an assessment that if a planned $20 billion investment in the United States materializes, the South Korean won could face additional depreciation pressure. Such a weakening of the won, in turn, could hinder South Korea's ability to sustain and stabilize its investment activities in the U.S.

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