South Korea Plans to Start Won-Yuan Direct Trading in December

South Korea will start direct trading between the won and the yuan in Seoul from December and is considering selling sovereign debt denominated in the Chinese currency for the first time.

About 10 banks will be appointed next month as market makers for the currency pair, according to a joint e-mailed statement by the government and the central bank. To encourage participation, the lenders may be offered a reduced levy on their foreign-currency borrowings on a temporary basis.