SEOUL, Dec. 22 (Korea Bizwire) — South Korea’s central bank said Friday that it has selected 12 banks, including six foreign banks, as the lenders responsible for setting prices for direct won-yuan transactions.
The Bank of Korea said the lenders will also be charged with taking the lead in providing liquidity to the market.
The six local banks are Kookmin Bank, Industrial Bank of Korea, Shinhan Bank, Woori Bank, KEB Hana Bank and Korea Development Bank. The six local branches of foreign banks are Deutsche Bank, Bank of Communications, Industrial and Commercial Bank of China, Bank of China, China Construction Bank Corporation, and Hong Kong and Shanghai Bank.
In 2014, South Korea launched the won-yuan direct market to boost trade payments in both currencies and reduce exchange rate-related risks.
The daily trading volume in the Seoul won-yuan direct market reached US$2.03 billion in the first 11 months of 2017, up slightly from last year’s daily average turnover of $1.95 billion, according to latest government data.