S.Korea picks 11 banks as liquidity provider in won-yuan direct trading market

South Korea picked 11 banks, including five foreign banks, as a liquidity provider in the direct won-yuan trading market for next year, the country's foreign exchange authorities said Tuesday.

Six domestic banks, selected to take the lead in providing the bid and offer prices in the won-yuan market, were Kookmin Bank, Shinhan Bank, Woori Bank, KEB Hana Bank, Korea Development Bank and Industrial Bank of Korea, according to the Bank of Korea (BOK) and the Ministry of Economy and Finance.

Five local branches of foreign banks included Bank of Communications, China Construction Bank, Industrial and Commercial Bank of China, Bank of China, and the HSBC Holdings plc.

The direct transaction market between the South Korean won and the Chinese yuan was launched here in 2014 to boost payments and settlements in trade using both currencies and lower the exchange rate-related risks.