South Korea's finance ministry announced that starting mid-January, registered foreign financial institutions (RFIs) will be permitted to conduct foreign exchange (FX) trading for current transactions, such as export and import settlements.
This policy is part of South Korea's efforts to boost the international use of the won and follows previous measures allowing foreign institutions to trade the currency directly through the domestic interbank system.
Previously limited to using the won for securities trading (e.g., stocks and bonds), RFIs will now have expanded opportunities to engage in FX transactions tied to trade settlements.
The initiative is intended to further liberalize the won's trading environment. This policy is aligned with the government's broader economic strategy, complementing the extension of onshore won and FX swap market trading hours to 2 a.m. (coinciding with London’s closing), a measure introduced in July.
This article was written by Eamonn Sheridan at
www.forexlive.com.
