The South Korean government is seeking to reduce the ceilings on banks’ forex derivatives positions, Reuters reports. The ceilings will likely be cut to 200% and 40%, compared with 250% of equity set for foreign bank branches and 50% for domestic banks. The regulations will also target banks with heavy non-deliverable forward positions. The government will also introduce a new round of inspections of banks’ forex transactions, focusing on activity in the overseas market for non-deliverable forwards.

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