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The Bank of Korea and the Finance Ministry announced a new dollar repurchase facility in which the central bank will lend dollars from reserves against US Treasuries and possibly agency securities. The facility is open to commercial banks, insurers and brokerages to stabilize the foreign currency market amid the coronavirus pandemic.
The central bank will buy the Treasuries, leaving reserves unchanged.
Adding dollar liquidity should ease won volatility and reduce the risk of sharp currency swings that raise Korean feed import costs. The policy is a currency-market tool and has no direct effect on grain supply.
koreajoongangdaily.comJIN EUN-SOOJun 30, 2020Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
