SEOUL, Nov 11 (Reuters) - South Korea will allow foreign-exchange dealing between securities companies from next year as part of efforts to broaden the local currency market dominated by a small number of banks, the finance ministry said on Monday.
Stock brokerage houses presently have to carry out foreign exchange dealing with banks, but the ministry plans to allow brokerage firms to directly deal with other brokerages, the ministry said in a statement.
South Korea is Asia's fourth-largest economy and the world's seventh-largest exporter but its domestic currency market remains relatively small in terms of the number of traders and overall trading activity.
There are 58 banks and branches of foreign banks dealing on the Seoul currency market. The country had about 60 brokerage firms at the end of last year.
The ministry also said it would allow Chinese banks and companies to open won accounts at subsidiaries there of South Korean banks, so that they can settle trade deals with South Koreans by using won funds secured through the won-yuan swap arrangement between the two countries.
(Reporting by Choonsik Yoo; Editing by Jacqueline Wong) Keywords: KOREA ECONOMY/FOREX
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