Bank of Korea "Unlimited Supply of Market Liquidity Demand for 3 Months" (Update)

[Image source=Yonhap News]

[Asia Economy Reporter Kim Eun-byeol] The Bank of Korea announced on the 26th that "the government will introduce a weekly regular repurchase agreement (RP) purchase system that supplies the full liquidity demand of the market without restriction under a certain interest rate level, so that the 'Livelihood and Financial Stability Package Program' can be operated in a timely manner."

The Monetary Policy Committee of the Bank of Korea held a meeting on the same day and decided to introduce this system. It will be operated for three months starting from April.

In addition, the Bank of Korea decided to expand the institutions and securities eligible for RP transactions to support this large-scale liquidity supply.

The number of non-bank institutions eligible for RP transactions will be expanded from the current 5 to 16, and bonds issued by public institutions (8 entities) will be included in the securities eligible for RP transactions. Loan-eligible guarantee securities will also be added to the securities eligible for RP transactions, including bonds issued by public institutions (8 entities) and bank bonds.

This content was produced with the assistance of AI translation services.