South Korea Plans FX Rule Easing to Expand Won’s Global Use

South Korea plans to relax foreign-exchange rules for capital transactions in H2 to internationalize the won and expand overseas use of the currency. The policy change is supportive for FX market openness and offshore won demand, though the magnitude/timing of capital flow effects is not specified.

Analysis

South Korea plans to relax foreign-exchange rules for capital transactions in H2 to internationalize the won and expand overseas use of the currency. The policy change is supportive for FX market openness and offshore won demand, though the magnitude/timing of capital flow effects is not specified.