Jin10 data reported on August 19 that oil prices futures have dropped, as the U.S. efforts to promote a peace protocol between Russia and Ukraine have reduced the likelihood of additional sanctions against Russia or the imposition of related secondary tariffs on its oil buyers. Dennis Kissler of BOK Financial stated in the report: "The chances of reaching a peace protocol are rising, which is likely to lead to a relaxation of sanctions on Russian oil products, thus making global supply more oversupplied." "Seasonally, crude oil prices typically decline before mid-October, and this trend seems to align with the current movement."

Gate.io News bot message, the Central Bank of Korea (BOK) has released the latest payment system report, announcing its participation in the construction of the national stablecoin regulatory framework. South Korea is advancing the second phase of cryptocurrency legislation, which is planned to be drafted in the second half of this year. The core content of the legislation includes stablecoin regulation, classification of cryptocurrency service providers, and token disclosure transparency. Data shows that by the end of 2024, the total number of cryptocurrency investors in South Korea will reach 18.25 million, accounting for more than 35% of the total population in South Korea. Source: The Block

According to four people familiar with the matter, the Bank of Korea is considering adjusting its guidance on the likely direction of future interest rates by extending the time frame and providing visual estimates to improve transparency. However, they said the proposal was opposed by at least one of the seven members of the central bank's governing board and a senior official, who feared that disclosing future policy could undermine public confidence in policy, especially if circumstances change suddenly. The move would represent a significant change in the way central banks formulate and communicate policy, and will be part of a broader effort to increase transparency and public understanding of their actions. South Korean authorities have been trying to push through reforms across financial markets, and the exporting powerhouse is trying to improve governance, transparency and communication. One of the sources said that one of the many forms under review is mapping the future path of interest rates, which is intended to provide quantitative, forward-looking guidance.

An outgoing BOK member called for measures to deal with debt risks that could arise again in the event of an interest rate cut. "With policy normalization, the likelihood of a rate cut is greater than the likelihood of no rate cut," Suh Young Kyung said in a speech on Tuesday. "Policies are needed to avoid interest rate cuts to stimulate house prices and household debt. ”

WTI crude hovered below $74 ahead of the API data after a volatile day, but then extended losses on data showing an unexpected increase in crude inventories. Dennis Kissler, senior vice president of trading at BOK Financial Securities, said in a note to clients that as the end of the year approaches, barring further escalations in the Red Sea region, more trading will focus on rebalancing positions when trading volume is scarce. It can be noted that WTI crude oil encountered a "death cross" today (the 50-day moving average fell below the 200-day moving average) for the first time since September 2022. In addition, the time spread, which is a key barometer of supply and demand, has eased, with the spread between the two closest contracts for WTI crude oil at 24 cents/b compared to 14 cents/b yesterday.

The Bank of Korea said on Thursday that its Monetary Policy Committee decided to reform the standing lending facility, a monetary policy tool that provides liquidity to banks, to strengthen its role as a liquidity support tool. The bank said in a statement that the Monetary Policy Committee decided to lower the loan interest rate of the standing lending facility from the current 100 basis points above the benchmark interest rate to 50 basis points above the benchmark interest rate, and accept more types of bonds as collateral, with the option to extend the loan the term. They said that this decision was made in response to the possibility of large-scale withdrawals in the digital banking environment that has attracted attention due to the Silicon Valley Bank incident. And for non-bank financial institutions that are not eligible for loans under the Bank of Korea Act, they will make quick decisions and provide liquidity support in the event of a problem

The Bank of Korea is expected to keep its benchmark interest rate unchanged at 3.50% at its policy meeting this Thursday. All 22 economists surveyed by The Wall Street Journal expect the Bank of Korea to pause rate hikes for the fourth time in a row. With South Korea's headline inflation rate falling to a 21-month low of 2.7 percent in June, four of the economists see a rate cut likely by the end of 2023. Still, most of them expect no rate change for the year. "We think the BOK will continue to maintain a hawkish stance so as not to send an easing signal to market participants prematurely," said Min Joo Kang, senior economist at ING Bank.

The South Korean won fell after stronger-than-expected U.S. economic data backed the possibility of another rate hike by the Federal Reserve, dampening global risk appetite. The dollar rose 0.2 percent against the Korean won to 1,307.95 after falling more than 1.5 percent in the previous two sessions. The 200-day moving average of USD/KRW is currently around 1327.68 and the 100-day moving average is at 1300.44. Woori Bank economist Min Gyeong-won wrote in a note that the won could erase recent gains as U.S. Treasury yields rose along with the dollar as U.S. jobs data supported the possibility of another rate hike in July. BOK member Suh Young Kyung said the won was unlikely to strengthen to pre-pandemic levels given structural changes such as heightened geopolitical competition, population management and increased demand for overseas investment.