ID :
183144
Thu, 05/19/2011 - 13:36
Auther :
Shortlink :
https://oananews.org//node/183144
The shortlink copeid
S. Korea to further tighten banks' handling of currency derivatives
SEOUL (Yonhap) - South Korea said Thursday that it will further lower the ceiling of foreign exchange derivatives transactions handled by local and foreign banks in a bid to curb the country's growing short-term debt.
The finance ministry said the government plans to restrict the amount of currency forwards held by local branches of foreign banks to 200 percent from the current 250 percent. The ceiling for Korean banks will be lowered to 40 percent from 50 percent.
The move came after financial authorities have inspected the practice of banks' currency forward trading and their handling of "kimchi bonds" amid a surge in short-term overseas debt.
The finance ministry said the government plans to restrict the amount of currency forwards held by local branches of foreign banks to 200 percent from the current 250 percent. The ceiling for Korean banks will be lowered to 40 percent from 50 percent.
The move came after financial authorities have inspected the practice of banks' currency forward trading and their handling of "kimchi bonds" amid a surge in short-term overseas debt.
