Bank of Korea(BOK) chief Rhee Chang-yong has said that discussions on currency swap arrangements may take place with U.S. Treasury Secretary Janet Yellen when she visits South Korea next week.

In a press conference following a BOK rate-setting meeting on Wednesday, Rhee said that while it would not be appropriate to talk about currency swaps with Yellen, as such a move falls under the purview of the U.S. Federal Reserve, related discussions could take place between Yellen and her Korean counterpart, finance minister Choo Kyung-ho, as the presidents of both nations had previously talked about discussing several measures to stabilize the foreign exchange market.

This comes as the Bank of Korea delivered an unprecedented interest rate hike of 50 basis points to two-point-25 percent amid concerns that the local currency was weakening against the U.S. dollar.

Yellen is expected to be in South Korea on July 19 and 20 to meet with her counterpart Choo and BOK chief Rhee, where they are expected to discuss the global economy and cooperation between the two countries on the economic and financial frontiers.