Insight

S.Korea to lobby for inclusion in MSCI developed market index

By Jihoon Lee and Yena Park

SEOUL (Reuters) – South Korea’s finance minister will foyer for the nation to be included within the Morgan Stanley Capital Worldwide (MSCI) developed market index when he meets the index supplier subsequent week, he mentioned on Tuesday.

“Inclusion within the developed market index is critical and already overdue,” Hong Nam-ki mentioned at a information convention with international media in Seoul.

Hong mentioned the received – presently at round 1,230 to the greenback – is at one of many weakest ranges he has ever seen and that the federal government is able to deploy market stabilizing measures if wanted.

Asia’s fourth largest economic system is in search of inclusion on an MSCI watchlist by June.

The absence of an offshore forex marketplace for the received has been one of many major obstacles South Korea has confronted in its efforts to be promoted from the MSCI rising market index to the developed market.

The outgoing finance minister mentioned among the measures on the desk for dialogue can be extending buying and selling hours and permitting abroad FX sellers to take part available in the market, however he didn’t present additional particulars when requested.

At present, onshore buying and selling hours are 00:00 GMT to 06:30 GMT and solely domestically licensed monetary establishments can take part.

Requested whether or not additional opening up the USD/KRW spot market may enhance volatility at a time when rising rates of interest and the Russia-Ukraine battle are including to uncertainties, Hong mentioned these are obstacles the nation wants to deal with.

“There are issues over opening up the FX marketplace for 24 hours, however we must bear what we’ve got to,” Hong added.

(Reporting by Jihoon Lee and Yena Park; Modifying by Tom Hogue and David Holmes)



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