Korea’s Pension Fund NPS Expands Currency Hedging to Bolster Won

South Korea’s National Pension Service is revising its rules to allow greater foreign-exchange hedging, a step aimed at easing pressure on the won. The policy change is directly relevant to FX flows and could modestly affect won demand and hedging activity, though the article provides no immediate size estimate.

Analysis

South Korea’s National Pension Service is revising its rules to allow greater foreign-exchange hedging, a step aimed at easing pressure on the won. The policy change is directly relevant to FX flows and could modestly affect won demand and hedging activity, though the article provides no immediate size estimate.