Didn’t get much of a chance to expand on this news earlier what with the Eurogroup news. Sth Korean authorities trying to stem capital inflow and a rocketing Won:
South Korea tightened limits on the amount of currency forward positions banks are allowed to hold as won gains threaten exports.
Authorities will cap transactions at branches of overseas lenders at 150 percent of equity, compared with 200 percent currently, according to a statement today from the Finance Ministry, Bank of Korea and the Financial Services Commission. The ceiling for domestic banks will be cut to 30 percent from 40 percent. The changes will take effect on Dec. 1, with a one- month grace period to Jan. 1.
