OREANDA-NEWS. January 16, 2015. The foreign exchange market of Seoul, South Korea, formally kicked off the direct RMB-KRW trading mechanism.

As a market maker for direct RMB-KRW trading, ICBC Seoul Branch was one of the first to conclude direct RMB-KRW transactions after the market opened. On that day, the Bank continuously made two-way RMB-KRW quotations on Seoul's foreign exchange market, and completed a total of 360 deals as of the close, with an aggregated trading volume of RMB502 million.

An ICBC official said that as one of the first market makers for direct RMB-KRW trading designated by the Korean central bank, the branch will fully leverage its advantages in RMB business and extensive forex trading experience, actively perform its market-making obligations, and provide liquidity to the RMB market in South Korea. In the meantime, ICBC will also further enhance its quotation capacity, diversify product lines and boost robust growth of direct RMB-KRW trading to contribute to the broader use of RMB in South Korea.

In recent years, with deepening trade and economic ties, as well as cultural exchanges between China and South Korea, RMB has been increasingly used and accepted by local financial institutions, enterprises and individuals in financial activities such as trade, investment, settlement and wealth management. Developing direct RMB-KRW trading is instrumental to reducing currency conversion costs, promoting bilateral trade and investment, and further facilitating the RMB internationalization process.