MOEF Says It May Take Bold Steps to Stabilize FX Market

[The Financial News] The economic authorities stated that, in the context of the war in the Middle East, they are prepared to implement bold measures to stabilize the market if volatility in the won–dollar exchange rate becomes excessive.
On the 7th, the Ministry of Economy and Finance (MOEF) held a foreign exchange market meeting with major global investment banks and domestic commercial banks, where it outlined this policy stance.
Moon Ji-sung, Deputy Minister for International Economy at MOEF, who chaired the meeting, said, "We are closely monitoring market conditions with a high level of vigilance," adding, "If volatility in the won deviates excessively from the fundamentals of the Korean economy, the government plans to take bold measures to stabilize the market."
He also noted that foreign exchange supply and demand are expected to improve thanks to the launch of the Reshoring Investment Account (RIA), increased dividends from overseas subsidiaries, the inclusion of Korean government bonds in the World Government Bond Index (WGBI), and the National Pension Service New Framework to be announced in April.
Participants agreed that "the fundamentals of the Korean economy are very solid and foreign currency liquidity is sound," and shared the view that, once the situation in the Middle East stabilizes, exchange rate volatility will ease quickly.

skjung@fnnews.com Jung Sang-geun Reporter