BOK selects 6 local, 5 foreign market maker banks for Korea-China currency trade

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BOK selects 6 local, 5 foreign market maker banks for Korea-China currency trade

Published: 26 Dec. 2024, 17:01

Foreign currency rates are displayed at a money exchange shop in Myeong-dong, central Seoul. [YONHAP]

Korea's central bank said Thursday it has selected six local and five foreign banks with branches in the country as market makers for direct trading between the Korean won and the Chinese currency, the renminbi, in 2025.

The six local won-yuan market makers for 2025 are KB Kookmin Bank, Shinhan Bank, Woori Bank, the Industrial Bank of Korea, Hana Bank and the Korea Development Bank.

The five foreign banks are the China Construction Bank, the Bank of Communications, the Industrial and Commercial Bank of China, the Bank of China and HSBC Holdings, according to the Bank of Korea (BOK).

The BOK annually updates the list of bank participants in the won-yuan direct trading market in a move to allow interbank and customer spot transactions without conversion to the dollar.

The selected banks will also be tasked with taking the lead in providing liquidity to the market, the BOK added.

Korea launched the won-yuan direct market in 2014 to boost trade payments in both currencies and reduce exchange rate-related risks.

Yonhap