The Bank of Korea said on the 23rd it plans to issue up to 6.6 trillion won in monetary stabilization securities in May. Monetary stabilization securities are securities the Bank of Korea issues to financial institutions and others to control the currency supply. The larger the issuance of monetary stabilization securities, the more funds are absorbed from the market.
Of the 6 trillion won, issuance will be by competitive bidding, and the remaining 500 billion to 600 billion won will be by public offering. Competitive bidding will be held seven times from June 4 to 26. The public offering will take place on the 27th of the same month for one day.
Of the 6 trillion won in competitive bidding, the largest tranche is 2.3 trillion won with a two-year maturity. The 91-day maturity is 2 trillion won, the three-year maturity is 1.2 trillion won, and the one-year maturity is 500 billion won. In the public offering, one-year, two-year, and three-year maturities will be issued.
The Bank of Korea plans to repurchase 3 trillion won of monetary stabilization securities in May. On the 12th of next month, 1 trillion won will be repurchased, and on the 21st of the same month, 2 trillion won will be repurchased. When the Bank of Korea repurchases monetary stabilization securities, funds are released into the market.