S Korea to sell huge T-bonds for forex
Reuters, Seoul
South Korea is to issue a record monthly amount of treasury bonds in January for foreign exchange market operations, reflecting concern the won's strength could exacerbate a slowdown in export growth, officials said yesterday.The finance ministry said it would issue 8.27 trillion won ($7.94 billion) in treasury bonds in the month, beginning on Monday, of which 5 trillion would be earmarked for foreign exchange operations. "The biggest ever budget for forex operations and the possible increase in the budget are aimed at delivering a strong message to the (foreign exchange) market," an official at the finance ministry told Reuters. The government plans to sell 2.49 trillion won in 3-year bonds on Monday, 2.6 trillion won in 5-year bonds on Jan 10 and 3.18 trillion won in 10-year bonds on Jan 17, the ministry said in a statement. The finance ministry added the total issuance could be increased depending on the situation in the foreign exchange market.
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