South Korean regulator to end repo agreements

This is due to improved market liquidity and reduced demands.

The Bank of Korea (BOK) will end its repurchase agreement operations towards injecting more funds into the financial market suffering from the COVID-led economic crisis, reports Yonhap News Agency.

Rolled out in April, the programme allowed the BOK to offer to purchase “unlimited” amount of bonds from domestic finance firms. It was initially designed to be run for three months and was extended by a month into July.

"The Bank of Korea plans to terminate the repo program at the end of July, considering improved market liquidity conditions and reduced demands," it said.

In case market conditions for financing worsen or market volatility expands, the BOK plans to actively supply additional liquidity to the market by either resuming the special repo operations or through irregular repo operations, the central bank added.