How much dollar liquidity will South Korea inject?

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South Korea Plans US$5 Billion to US$10 Billion Dollar Liquidity Injection

South Korea intends to inject between US$5 billion and US$10 billion into its banking system to ensure businesses have adequate funding amidst growing global economic concerns due to the coronavirus pandemic. This measure aims to bolster the supply of US dollars in the market, addressing the increased demand and financial market volatility.
Increased Forward Position Caps for Banks

To facilitate the dollar injection, South Korean authorities will raise the cap on foreign currency forward positions for local banks. This ceiling will be increased to 50 per cent of their equity capital, up from the current 40 per cent, effective from tomorrow.
Relaxed Ceilings for Foreign Banks

Foreign banks operating in South Korea will also see a relaxation of their foreign currency forward position limits. The ceiling for these institutions will be raised to 250 per cent from the existing 200 per cent of their equity capital, further enhancing dollar liquidity.
Broader Economic Support Measures

These liquidity measures are part of a wider set of actions implemented by South Korean policymakers. In recent days, they have also introduced an emergency interest rate cut and an additional budget of 11.7 trillion won to alleviate pressure on the national economy and maintain the stability of its financial system.

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How much dollar liquidity will South Korea inject?

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