TREE NEWS update: South Korea’s finance ministry and central bank said a report that the country was considering large-scale purchases of long-term US Treasuries is “not consistent with the facts,” adding that the composition and management of foreign exchange reserves are not disclosed publicly. The denial followed a report by the Korea Economic Daily that Seoul was weighing such purchases.
South Korea Denies Report on Large-Scale US Treasury Bond Purchase
The swift, joint denial from both the finance ministry and the central bank is itself the signal: reserve composition is a policy-sensitive topic Seoul does not want framed as a bargaining chip or a concession. The episode matters less for what Korea might buy than for how quickly a single media report can move perceptions around official reserve management and its diplomatic overtones. Whether the underlying report is fully put to rest, or resurfaces through other channels, is the open question worth tracking.
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