South Korea FinMin: Government will prepare various layers of tools to inject Forex liquidity

While providing details of the South Korean governments further combat measures against the coronavirus (COVID-19), Finance Minister Hong Nam-ki mentioned that the government will prepare various layers of tools to inject Forex liquidity into the markets.

Key quotes

The government will prepare various layers of tools to inject Forex liquidity into the markets.

Government to exempt levy on foreign currency borrowing temporarily.

Government to relax liquidity coverage ratio rules for banks temporarily.

FX implications

The USD/KRW pair fails to portray any immediate reaction to the news while taking rounds to 1,234. However, the pair remains on the back foot after marking the heavy declines the previous day.