Korea cuts foreign bank forward limits

In order to contain volatility and strong appreciation of its currency, Korea has decided to cut bank limits on FX positions. The impact could see corporates move towards the FX swap and cross-currency swap markets to source dollar funding.

By Daniel Flatt

Nov 27, 2012

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As had been expected, Korea’s finance ministry and central bank announced today they would cut the limit on banks’ FX positions, in a bid designed to dampen recent volatility and escalating appreciation of the won.

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