BOK to launch pilot 24-hour offshore won settlement network in September
En resumen
- The Bank of Korea (BOK) announced a pilot program for a 24-hour offshore won settlement network, starting in September with four local banks.
- This initiative aims to improve foreign investors' access to the Korean won and support South Korea's bid for inclusion in the MSCI Developed Markets Index, with full implementation by January.
Resumen generado por IA
Por qué importa
The Bank of Korea is launching a pilot program for a 24-hour offshore won settlement network in September to enhance foreign investors' access to the local financial market. This follows the official launch of a 24-hour trading system for the Korean won earlier this month.
SEOUL, July 21 (Yonhap) -- The Bank of Korea (BOK) said Tuesday that it plans to launch a pilot program for a 24-hour offshore won settlement network in September as part of the country's efforts to improve foreign investors' access to the local financial market.
The BOK said it is testing the system, named the BOK Won International Wire Network, with four local operators -- Kookmin Bank, Woori Bank, Hana Bank and Shinhan Bank.
Revisions to related regulations will be completed by August before the pilot program begins in September, the BOK added.
A full implementation is scheduled for January.
The network will operate on a 24-hour basis from 9 a.m. on each business day to 9 a.m. the following day, and will close on weekends and public holidays. It will enable offshore investors to freely trade the Korean won with other foreign investors using accounts opened at banks in their home countries.
The BOK expects the system to improve foreign investors' access to the won settlement infrastructure while also supporting South Korea's efforts to gain inclusion in the Morgan Stanley Capital International (MSCI) Developed Markets Index.
Earlier this month, Asia's fourth-largest economy officially launched a 24-hour trading system for the Korean won as part of the government's long-term plan to internationalize the currency.
Qué observar
Perspectiva de IA — posibilidades, no hechos
The BOK will complete revisions to related regulations by August.
Muy probable · En meses
The 24-hour offshore won settlement network will be fully implemented in January.
Muy probable · En meses
Preguntas abiertas
- What are the specific revisions to related regulations?
- What is the expected volume of transactions during the pilot?
- What are the detailed criteria for MSCI Developed Markets Index inclusion?
