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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] The National Pension Service (NPS) has decided to extend its foreign exchange (FX) swap agreement with the central bank, originally set to expire at the end of this year, for an additional year.
On the 15th, the NPS Fund Management Committee held its 7th meeting of 2025 at the Government Complex in Seoul, during which it reviewed and approved the “Proposal to Extend the Temporary Strategic FX Hedging Period” and the “Proposal for Setting Target Excess Returns,” among other agenda items.
The committee had temporarily extended the strategic FX hedging period through this year to guard against potential foreign exchange losses following last December’s sharp spike in the won-dollar exchange rate.
However, with the exchange rate still remaining at elevated levels, the committee decided to further extend the hedging period through next year. Accordingly, the NPS plans to extend its FX swap contract with the Bank of Korea until the end of 2026.
알파경제 Kim Jisun Reporter(stockmk2020@alphabiz.co.kr)
