Economy

S. Korea to issue yen-denominated FX stabilization bonds next month

South Korea’s finance ministry said Thursday it plans to issue yen-denominated foreign exchange stabilization bonds next month, as the country seeks to expand economic ties with Japan.It would mark the first time for South Korea to issue yen-denominat…

South Korea's finance ministry said Thursday it plans to issue yen-denominated foreign exchange stabilization bonds next month, as the country seeks to expand economic ties with Japan.

It would mark the first time for South Korea to issue yen-denominated foreign exchange bonds for Japanese institutional investors.

While the detailed amount has not been revealed, the amount is expected to reach at least 20 billion Japanese yen (US$134 million), experts said.

The foreign exchange bonds are sold to secure reserves against volatility in the currency market.

In June, South Korea and Japan also agreed to resume their currency swap, which has been stalled since 2015.

The new arrangement, worth $10 billion, will be based on the U.S. dollar, facilitating the exchange of the Korean won for Japan's greenback reserves, and vice versa, the finance ministry said.

Source: Yonhap News Agency