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(Seoul=Yonhap Infomax) Hye Rim Pi – South Korea's short-term money market is expected to face a reserve shortfall on the 26th.
On this day, reserve balances are projected to increase due to fiscal disbursements of 6.1 trillion won ($5.16 billion), 500 billion won ($423 million) from the Public Fund, and 500 billion won ($423 million) from maturing adjustment deposits.
However, reserve-reducing factors include tax revenue inflows of 1.2 trillion won ($1.02 billion), a 4.5 trillion won ($3.81 billion) withdrawal of surplus treasury funds, 500 billion won ($423 million) in government bond payments, and 500 billion won ($423 million) in adjustment deposit withdrawals.
A market participant commented on the call market, stating, "With excess reserves in the system, demand for bank borrowing remains limited, though some securities firms may seek call loans."
Regarding the repo market, the participant added, "Liquidity outflows are expected due to subscription activity and the withdrawal of surplus treasury funds, while credit instruments are likely to remain tight."
On the previous trading day, reserve-increasing factors included fiscal disbursements of 900 billion won ($761 million), 2.8 trillion won ($2.37 billion) from the Public Fund, 740 billion won ($626 million) in maturing monetary stabilization bonds, and 500 billion won ($423 million) in maturing adjustment deposits.
Reserve-reducing factors were 800 billion won ($677 million) in tax revenue, 20 trillion won ($16.92 billion) in maturing Bank of Korea repo purchases, 2.8 trillion won ($2.37 billion) in government bond payments, 1 trillion won ($846 million) in new monetary stabilization bond issuance, 500 billion won ($423 million) in adjustment deposit withdrawals, and 400 billion won ($338 million) in other factors.
As a result, the previous day's reserve shortfall stood at 7.5016 trillion won ($6.35 billion), with a cumulative reserve surplus of 50.5110 trillion won ($42.77 billion).
The overnight call rate was recorded at 2.520%, with a trading volume of 14.1863 trillion won ($12.00 billion).
(※The term "reserve cumulative balance" 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 cumulative surplus indicates excess liquidity in the market, while a growing deficit signals a shortage of funds relative to requirements.)
phl@yna.co.kr
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