Post by : Shakul

South Korea has announced that it will officially begin 24-hour trading of the dollar-won spot market from July 6, marking a major step in opening and modernising the country’s foreign exchange market. The decision was confirmed by South Korea’s finance ministry on Thursday.

According to officials, trial operations for the extended trading hours will begin on June 29 before the full rollout in early July. The move is expected to increase market accessibility for global investors and improve the competitiveness of South Korea’s financial markets.

The new system will allow traders to buy and sell the South Korean won against the US dollar around the clock for the first time in the country’s history. Financial analysts say the change could improve liquidity and make it easier for international investors to participate in Korean currency markets across different time zones.

South Korea has been gradually easing regulations and introducing reforms aimed at making its financial markets more globally integrated. Authorities believe the expansion of trading hours will help attract foreign investment and strengthen Seoul’s role as a major Asian financial hub.

Experts say the 24-hour trading structure could also reduce volatility by allowing quicker responses to global economic developments and geopolitical events that occur outside normal Korean market hours.

The dollar-won exchange rate is closely watched by investors because South Korea remains one of Asia’s largest export-driven economies with strong links to global technology, automobile, and manufacturing industries.

Financial market participants are expected to closely monitor the initial trading period to evaluate liquidity levels, participation from international banks, and the overall impact on currency market stability.

The announcement reflects South Korea’s broader strategy to modernise its financial infrastructure and increase international confidence in the country’s economy amid growing competition among Asian financial centres.

#Economy #South Korea #Business