BOK Selects 32 Institutions for Open Market Operations

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The Bank of Korea announced on the 22nd that it has selected 32 institutions to participate in open market operations for one year starting next month.

According to the Bank of Korea, there are 21 institutions eligible for competitive bidding and subscription of Monetary Stabilization Bonds and simple securities trading, 24 institutions eligible for repurchase agreement (RP) transactions, and 9 institutions eligible for securities lending.

Institutions eligible for repurchase agreement transactions are automatically selected as Monetary Stabilization Account institutions as well. These institutions will be able to participate in the Bank of Korea's open market operations for one year from August 1 until the end of July next year.

The Bank of Korea uses open market operation tools such as issuing Monetary Stabilization Bonds, selling RPs, and depositing in the Monetary Stabilization Account to absorb market liquidity. These institutions will play a role in purchasing and distributing Monetary Stabilization Bonds, RPs, and other instruments. The Bank of Korea stated that it plans to efficiently and smoothly manage liquidity adjustments through transactions with these institutions.

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