# New, never-before-attempted dollar repo is in the works

> 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.

- Date: 2020-06-30 · published 2020-06-30T12:00:00.000Z
- Category: macro · region South Korea · magnitude low
- Page: https://feedsoft.ai/events/52857-new-never-before-attempted-dollar-repo-is-in-the-works
- Commodities: [Korean Won (KRW per USD)](https://feedsoft.ai/c/USDKRW.md)

## Why it matters

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.

## Read by commodity

- USDKRW: bearish ▼

## Sources

- koreajoongangdaily.com: https://www.koreajoongangdaily.com/business/new-neverbeforeattempted-dollar-repo-is-in-the-works/10080894

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.