March 17, 2020 / 5:23 AM / 12 days ago

Exclusive: South Korea to announce measures to ease dollar funding shortage on Wednesday - government officials

FILE PHOTO: South Korean 10,000 won note is seen on U.S. 100 dollar notes in this picture illustration taken in Seoul, South Korea, December 15, 2015. REUTERS/Kim Hong-Ji/File Photo

SEOUL (Reuters) - South Korea will announce measures on Wednesday to ease dollar funding shortages in its local market, two government officials familiar with the matter told Reuters.

The measures will aim to address heightened funding stress involved with the rising cost of raising U.S. dollar funds in Korean financial markets, officials said on Tuesday, without elaborating.

The government is also preparing to announce follow-up measures to address market volatility and wider fallout from the fast-spreading coronavirus pandemic.

The cost of raising U.S. dollars by swapping the South Korean won surged to a 6-year high on Friday as demand for dollar funding surged among local brokerages.

Reporting by Cynthia Kim; Editing by Kim Coghill

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