(Seoul=Yonhap Infomax) Hye Rim Pi – South Korea's short-term money market is expected to show an excess in reserve balances on the 24th.


On this day, fiscal disbursements of 3.2 trillion won ($2.42 billion) and the maturity of 500 billion won ($378 million) in liquidity adjustment deposits are set to increase reserve balances.


Conversely, tax revenue inflows of 3.1 trillion won ($2.35 billion) and 500 billion won ($378 million) in new liquidity adjustment deposits are expected to reduce reserves.


An official in the money market said regarding the call market, "A positive reserve balance is anticipated, and demand for call borrowing will likely remain limited."


On the repo market, the official noted, "With liquidity shrinking due to subscription refunds, banks are expected to show some reliance on repo purchases."


On the previous trading day, fiscal disbursements of 1.8 trillion won ($1.36 billion), early buybacks of government bonds worth 3.2 trillion won ($2.42 billion), and the maturity of 500 billion won ($378 million) in liquidity adjustment deposits contributed to an increase in reserves.


Meanwhile, tax revenue inflows of 1.9 trillion won ($1.44 billion) and 500 billion won ($378 million) in new liquidity adjustment deposits acted as factors reducing reserves.


As a result, the previous day's reserve balance stood at an excess of 12.7099 trillion won ($9.62 billion), with the cumulative reserve balance (jeoksu) showing a surplus of 19.5385 trillion won ($14.79 billion).


The overnight call rate was recorded at 2.518%, with a trading volume of 13.9573 trillion won ($10.57 billion).


(※The cumulative reserve balance, or jeoksu, refers to the sum of daily surpluses or deficits in banks' reserve balances over a given period. It represents the total of daily reserve balances. Banks may hold more or less than the required reserves. A large surplus in jeoksu indicates ample liquidity in the market, while a significant deficit suggests a shortage of funds relative to requirements.)


phl@yna.co.kr


(End)

All content has been translated by AI.
Copyright © Yonhap Infomax Unauthorized reproduction and redistribution prohibited.