South Korea picks 11 banks as liquidity provider in KRW-CNY direct trading market

SEOUL (XINHUA) – South Korea picked 11 banks, including five foreign banks, as a liquidity provider in the direct KRW-CNY trading market next year, the country’s foreign exchange authorities said yesterday.

Six domestic banks, selected to take the lead in offering bid and offer prices in the KRW-CNY market, were Kookmin Bank, Shinhan Bank, Woori Bank, KEB Hana Bank, Korea Development Bank and Industrial Bank of Korea, according to the Ministry of Economy and Finance and the Bank of Korea (BOK).

The other five local branches of foreign banks included Bank of Communications, China Construction Bank, Industrial and Commercial Bank of China, Bank of China and HSBC.

The direct transaction market between the KRW and CNY was launched here in 2014 to boost payments and settlements in trade using both currencies and lower the exchange rate-related risks.

The authorities said in a statement that it will enhance incentives for the liquidity providers in a bid to diversify the currencies used in trade and vitalise the transaction in the KRW-CNY market.