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S Korean central bank injects $1.32 bln to financial system |
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21:01, November 21, 2008 |
South Korea's central bank on Friday purchased 2 trillion won (1.32 billion U.S. dollars) worth of bank and other special bonds through an auction of repurchase agreements in an effort to stabilize the market.
The Bank of Korea (BOK) said it signed 28-day repurchasing agreements with successful bidders, with an average interest rate of 4.14 percent.
It was the second time the BOK bought bank bonds since Nov. 11 when the BOK supplied 1 trillion won (6.6 billion U.S. dollars) into the financial system.
A repurchase agreement allows one party to sell a security at a specified price with a commitment to buy the security back at a later date.
The BOK decided in late October to include bank bonds and some special debts as collateral for its open market operations.
Source: Xinhua
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