Korea Plans to Boost Overnight Won Liquidity Post Spread Blowout
- Some traders held back trading, changed positions as shock hit
- Govt plans to reveal more steps to boost late night liquidity
A dealing room at Hana Bank in Seoul, South Korea, on Dec. 4.
Photographer: Jean Chung/BloombergThis article is for subscribers only.
South Korea is planning measures to boost after-hours liquidity in the won, after this week’s political crisis triggered a surge in volatility in the currency.
When South Korean President Yoon Suk Yeol late Tuesday night shocked the country by briefly imposing martial law, the gap between bid and offer prices in the spot market widened to as much as 16 won and remained elevated through the night, according to data compiled by Bloomberg. That compared to about 2.5 won for the non-deliverable forward market, another venue for betting on Korea’s currency.