South Korea central bank says it has no plans to extend Fed swap lines further

South Korea says that the onshore dollar market looks stable now

Adding that the central bank will only discuss with the Fed to inject dollar liquidity should there be funding stress again in the market.

This is going to be an interesting space to watch in the coming months, as we see the Fed swap lines start to run its course in due time (most will run for at least 6 months).

Even though they may not be fully utilised as of late, the mere notion of it being in place does provide some assurance to investors in the market. For some context:

• South Korea says it will announce steps to ease dollar funding shortage
• Fed establishes dollar swap lines with more central banks