South Korea is mulling on investing part of its FX reserves in yuan-denominated Chinese securities, The Wall Street Journal reports. South Korea at present, invests in yuan assets through its contribution to the Asian Bond Fund, though the amount is very less.
The country’s central bank is seeking to include assets denominated in major currencies other than the U.S. dollar, including the yen, euro and the U.K. pound. Bank of Korea applied for a Qualified Foreign Institutional Investor license early this year with HSBC as the required custodian bank, adds Global Times.
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