South Korea investigate forex trading positions
Tuesday, October 5th, 2010
South Korea sought had some problems with speculative currency inflows the latest year, making the local currency to spike. Now, an investigations of the major banks and their forex positions will start, according to Korean Ministry of Strategy and Finance.
What kind of forex trading will be investigated?
We will put our focus on forex forwards, forex futures and forex derivate instruments. No investigation will be made for online forex trading, according to the South Korean ministry.
Purpose of the investigation?
The investigation aim to prevent excessive short term foreign currency loans, and offshore borrowing. South Korea is the 4th largest economy in Asia, and excessive capital inflow may lead to financial instability and slower recovery from the economic slowdown (more…)
