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S. Korea tightens FX regulations to slow capital inflow

Published on Nov 27, 2012 8:42 AM
 

SEOUL (REUTERS) - South Korea said on Tuesday it would cut the ceilings on banks' foreign currency derivatives by one-quarter from January in a widely expected move aimed at curbing growing capital inflow that has pushed the won higher.

The ceiling will be cut to 30 per cent of equity for domestic banks from the current 40 per cent and to 150 per cent for branches of foreign banks from 200 per cent, the Finance Ministry said in a statement released minutes before the local currency market opened.