South Korea says new FX steps will boost won's status, business for firms

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SEOUL :South Korea's plans to loosen restrictions in its currency market will raise the won's status globally and boost business opportunities for local financial firms, a vice finance minister told Reuters on Thursday.The new measures, unveiled earlier this week, call for more than doubling the trading hours

SEOUL :South Korea's plans to loosen restrictions in its currency market will raise the won's status globally and boost business opportunities for local financial firms, a vice finance minister told Reuters on Thursday.

"We are not fully allowing the won to be freely traded outside the country but just make it more convertible," Bang told Reuters in an interview, adding the government would still maintain its oversight over the financial institutions trading the won. He said there was no meaningful factor seen behind massive foreign fund outflows in the past two consecutive months from local bond market, other than the fact there was a large amount of bonds coming to maturity during the period.Bang also said there was almost no danger of South Korea's cooling real estate market causing a systemic risk to the larger financial system, noting policy measures have succeeded in diffusing money market strains related to property development projects.

The three-month commercial paper yield had soared by more than 200 basis points in a few weeks from just above 3 per cent in late September last year on concerns about possible debt defaults by property developers.

 

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South Korea FX steps to boost global status, business for firms - vice fin minSEOUL : South Korea's plans to loosen restrictions in its currency market will raise the won's global status and, as a result, boost business opportunities for local financial firms, a vice finance minister told Reuters on Thursday.Vice Minister Bang Ki-sun said the government was working on follow-up mea
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