South Korea is set to commence 24-hour trading of the dollar-won spot market from July 6, enhancing access and modernisation in the country’s foreign exchange arena. This progressive move was disclosed by the finance ministry on Thursday.
Trial operations for the extended hours will kick off on June 29, leading to the full implementation in early July. This initiative is anticipated to bolster market participation from global investors and enhance the overall competitiveness of South Korea’s financial landscape.
For the first time, traders will have the opportunity to trade the South Korean won against the US dollar around the clock, a historic change for the nation. Financial experts suggest that this shift will enhance liquidity and facilitate international investments in Korean currency markets irrespective of time zones.
The South Korean government has been progressively relaxing regulations and introducing reforms to ensure a more globally integrated financial environment. Authorities expect that extended trading hours will draw more foreign investments, reinforcing Seoul’s position as a pivotal Asian financial hub.
Analysts believe that this 24-hour trading model could mitigate volatility, allowing for swift reactions to global economic shifts and geopolitical developments occurring outside regular South Korean trading hours.
Investors closely monitor the dollar-won exchange rate, as South Korea ranks among Asia’s largest export-driven economies, with deep ties to the global technology, automobile, and manufacturing sectors.
Market participants are set to scrutinize the initial trading phase to assess liquidity dynamics, international bank involvement, and the overall influence on currency market stability.
This announcement represents South Korea’s broader ambition to modernise its financial infrastructure and bolster international confidence in its economy amidst increasing competition from other Asian financial centres.
