Bank of Korea likely to tap 2 local banks for yuan-won market clearing services

[SEOUL] South Korea's central bank will likely select two local banks to handle clearing and settlement services in early April ahead of the launch of a yuan-won market in Shanghai, sources with knowledge of the matter told Reuters on Thursday.

Central bank and government officials have said the direct trading market will be launched by June 30. Applications for local banks to become clearing bank candidates were closed earlier this week, and the sources said competition is stiff.

The announcement has been the focus of local banks in recent weeks. The number of clearing banks to be chosen and the timing of the announcement is not yet known.

REUTERS