S. Korea picks 11 local, foreign banks for won-yuan FX trading in 2020

South Korea's finance ministry said Sunday it has selected 11 banks, including five foreign banks, as the lenders responsible for setting prices for direct won-yuan transactions next year.

The banks will be also tasked with taking the lead in providing liquidity to the market, the Ministry of Economy and Finance said in a statement. 

The six South Korean banks are KB Kookmin bank, Industrial Bank of Korea, Shinhan Bank, Woori Bank, KEB Hana Bank and Korea Development Bank. And the five local branches of foreign banks are the Bank of Communications, Industrial and Commercial Bank of China, Bank of China, China Construction Bank Corp. and HSBC.

In 2014, South Korea launched the won-yuan direct market to boost trade payments in both currencies and reduce exchange rate-related risks.

The daily trading volume in the Seoul won-yuan direct market reached an average $2 billion as of December this year, up from last year's $1.82 billion, according to government data. (Yonhap)