South Korea will remove restrictions on the won to operate 24 hours a day starting in July, a legacy of the 1997 Asian financial crisis. The measure aims to attract foreign investment and elevate the country's financial status. However, for citizens, the full opening of the exchange rate could translate into greater volatility and a direct impact on the price of imported products.
Financial infrastructure: the challenge of continuous liquidity 🌙
To sustain 24/7 operations, the South Korean financial system will need automated trading platforms and constant liquidity. Real-time settlement mechanisms and adjustments to guarantee margins will be implemented to avoid sharp jumps in the won's price. The key will lie in market algorithms and the central bank's ability to intervene without a fixed schedule, a technical challenge that few countries have resolved stably.
The won no longer sleeps: and neither does your wallet 💸
Now the won will work double shifts without rest, like that office colleague who never disconnects from the chat. For the average citizen, this means the price of imported rice could rise while they snore. The good news: if you are a night owl investor, you can lose money at any hour. Financial globalization never rests, but your bank account does, though perhaps not as peacefully.