The revised enforcement decree of the foreign exchange transaction act was passed in the cabinet meeting to allow the RFIs, such as offshore banks and securities firms, to take a direct part in the inter-bank foreign exchange market from Oct. 4, according to the Ministry of Economy and Finance.
Under the previous act, the local foreign exchange market had been opened to domestic financial institutions and foreign institutions with a South Korean branch.
The Bank of Korea will be in charge of monitoring the RFIs.
The ministry said the revision laid the foundation for foreign financial institutions and their customers to access the local foreign exchange market more easily, expecting the foreign exchange services to improve through the higher transaction volume.
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