the Central Bank of South Korea launches its own version of quantitative easing. The regulator will buy unlimited amounts of bonds in the three months to calm money markets against the background of the pandemic coronavirus, writes Reuters.
the Bank of Korea announced that the REPO auctions will be held every week until the end of June. More financial institutions can borrow unlimited amounts of funds at the REPO rate not higher than 0,85%.
in addition, the Central Bank announced that it would accept a wider range of collateral, including the notes issued by public companies.
on March 16, the Bank of Korea cut its seven-day REPO rate by 50 basis points to 0.75% amid growing fears of markets about the implications of the coronavirus for the fourth largest economy of Asia.
this week, South Korea doubled a planned package of measures to rescue the economy up to 100 trillion won ($80 billion) to support companies affected by the outbreak COVID-19.
“Through this (REPO transactions) we will supply enough money for state programs to save on 100 trillion won,” said the Bank of Korea.