March 27, 2020 08:30
The Bank of Korea on Thursday said it will temporarily supply an unlimited amount of liquidity to mitigate the economic fallout from coronavirus. This is the first time the central bank has taken such a drastic measure.
The liquidity injections will be made for three months starting April 1. During that time, the BOK will purchase bonds on the local repo market every Tuesday.
The central bank's plan is to provide as much as is needed to prevent a credit crunch in the financial market. Based on market conditions, the BOK will consider extending the measure beyond three months.
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