BOK buys record repos in 2024 to inject liquidity amid political chaos

Bok Buys Record Repos In 2024 To Inject Liquidity Amid Political Chaos

Protestors hold a rally calling for the impeachment of suspended President Yoon Suk Yeol in Seoul, Jan. 9. Yonhap

Protestors maintain a rally calling for the impeachment of suspended President Yoon Suk Yeol in Seoul, Jan. 9. Yonhap

Korea’s central financial institution purchased a report quantity of repurchase agreements final yr as a part of efforts to inject liquidity into the market amid financial difficulties and a political disaster brought on by President Yoon Suk Yeol’s martial regulation declaration, information confirmed Monday.

The Financial institution of Korea (BOK) injected 106.1 trillion gained ($72.13 billion) by the repo shopping for scheme in 2024, which marked the most important yearly determine ever, in line with the information compiled by the central financial institution and submitted to Rep. Chung Il-young of the primary opposition Democratic Celebration of Korea (DPK).

Of the overall, repo operations price 47.6 trillion gained had been carried out in December when monetary authorities vowed to supply „limitless liquidity“ to the market to reduce the affect of Yoon’s stunning, albeit short-lived, martial regulation imposition on Dec. 3.

The determine for December is bigger than that for your complete yr of 2020 at 42.3 trillion gained when the nation was reeling from the COVID-19 pandemic.

„The info indicated that the martial regulation incident had higher repercussions for the monetary market than the pandemic,“ the lawmaker stated, calling on the central financial institution to proceed taking all-out efforts to make sure market stability.

Following the martial regulation declaration, the Korean foreign money sank to round 1,450 gained towards the U.S. greenback, the bottom in almost 16 years, and has since stayed nicely under that stage.

A repurchase settlement is a deal whereby one get together sells the opposite a safety at a specified value with a dedication to purchase the safety again at a later date. The BOK buys repos to supply liquidity and settle the market.

The Nationwide Meeting has voted to question Yoon pending a remaining determination by the Constitutional Courtroom, and an intensive probe into the case is underneath method. (Yonhap)

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