BOK to regularly inject liquidity via repo operations

SEOUL, June 26 (Yonhap) -- South Korea's central bank said Thursday it plans to begin injecting liquidity via repurchase agreements (repo) regularly to boost the money supply from next month. The Bank of Korea (BOK) said starting July 10, it will buy bonds with a 14-day repo every Tuesday and sell them with a seven-day repo every Thursday. The BOK has been mainly buying repos in a regular manner to adjust liquidity in the financial system. The move comes as the money supply from overseas has been falling amid a waning current account surplus and increased money outflows due to residents' overseas stock investments. Local money demand also has been increasing in tandem with the growing size of the economy and the digitization of financial transactions. But the timetable and repo maturities will change ahead of and after the central bank's rate-setting meeting, it said. An official checks banknotes at a Hana Bank branch in Seoul, in this July 17, 2024, file photo. (Yonhap) sam@yna.co.kr(END)

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SEOUL, June 26 (Yonhap) — South Korea’s central bank said Thursday it plans to begin injecting liquidity via repurchase agreements (repo) regularly to boost the money supply from next month.

The Bank of Korea (BOK) said starting July 10, it will buy bonds with a 14-day repo every Tuesday and sell them with a seven-day repo every Thursday.

The BOK has been mainly buying repos in a regular manner to adjust liquidity in the financial system.

The move comes as the money supply from overseas has been falling amid a waning current account surplus and increased money outflows due to residents’ overseas stock investments.

Local money demand also has been increasing in tandem with the growing size of the economy and the digitization of financial transactions.

But the timetable and repo maturities will change ahead of and after the central bank’s rate-setting meeting, it said.