Govt. to Set Up Second Defense Line for FX Reserves: FSC
The government here in Korea plans to set up a second line of defense for the nation's foreign currency liquidity, as a countermeasure against the deepening eurozone debt crisis.
An official at the Financial Services Commission said on Sunday four state-run lenders have begun to secure foreign exchange reserves of around 8 billion US dollars since late last year.
This comes amid concerns that the ongoing fiscal crisis in Europe may squeeze the foreign currency liquidity situations of local banks.
The foreign reserves secured by public institutions will be used to provide foreign currency loans to small- and mid-sized firms.
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