Eleven Banks Selected as Direct Yuan Transaction Market Makers for Next Year

Six Domestic Banks Including Kookmin, Shinhan, Woori, and IBK Selected
Incentive Improvement Plan for Market Makers... Scheduled to be Announced in the First Half of Next Year

[Asia Economy Reporter Jang Sehee] Eleven banks have been selected as market makers for the direct RMB trading market next year.

Among the 11 market makers announced by the Ministry of Economy and Finance and the Bank of Korea, six domestic banks were selected: Kookmin, Shinhan, Woori, Industrial Bank of Korea, Hana, and Korea Development Bank.

In addition, five foreign bank branches in Korea were selected: Bank of Communications, China Construction Bank, Industrial and Commercial Bank of China, Bank of China, and Hongkong and Shanghai Banking Corporation.

The Ministry of Economy and Finance and the Bank of Korea stated that market makers were selected based on their direct RMB trading performance, compliance with quoting obligations, and the extent of customer transactions.

The selected banks will continuously quote bid and ask prices in the direct RMB trading market, leading price formation and supplying liquidity to the market.

Meanwhile, the Ministry of Economy and Finance and the Bank of Korea plan to improve incentives for market makers to revitalize the direct RMB trading market and diversify settlement currencies. The changes to incentives will be applied starting from the reduction of the '2021 Foreign Exchange Soundness Charge,' with specific methods to be announced in the first half of next year.

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