South Korea recently lifted a 14-year ban on kimchi bonds to attract capital inflows, improving access to foreign currency. Following the announcement, the Korean won saw short-term gains, although the effect of higher financing costs in dollars may temper immediate enthusiasm.
The lifting of the ban has led to increased retail investment in dollar-backed stablecoins as investors seek overseas opportunities. This shift signals a positive outlook for foreign currency liquidity and market stability, although market responses may vary.
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