In an unexpected move, the Seoul Foreign Exchange Market Committee announced that it would limit access to information used by many people for Forex trading. This information instead will only be made available to banks and other select financial institutions.
This unexpected move by South Korea is in an effort to limit the volatile Korean Won. Seoul officials hope that will less information the Won will stabilize and remain a cheaper currency.
The government has also recently announced a deregulation scheme as well that was implemented today. Based on this, it raised the ceiling for overseas direct investments by Koreans to $3 million, up from $1 million.
With this announcement comes after the Won’s rise by 5% in the past 120 days. South Korean officials that in an effort to depreciate the Won, limiting access to Forex information should help. This is due to the fact that in the past many offshore traders with large amounts of cash was contributing to the volatile movements of the Won. Thus limited access only to banks for Forex quotes will decrease speculation on the fall and rise of the Won.
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