Ministry of Economy and Finance Holds FX Market Meeting: "Bold Measures if Won Volatility Excessive"

Financial Market Assessment with Global Investment Banks and Domestic Banks

On the 19th, the Won/Dollar exchange rate information is displayed in the dealing room of the Hana Bank headquarters in Seoul. At 9:03 a.m. on the same day in the Seoul foreign exchange market, the Korean won exchange rate against the U.S. dollar rose by 18.2 won from the previous day's weekly trading closing price (as of 3:30 p.m.) to 1,501.3 won. This is the highest level since March 10, 2009 (1,561.0 won) during the financial crisis, based on weekly intraday trading. Photo by Jo Yongjun, March 19, 2026

On April 7, the Ministry of Economy and Finance held a foreign exchange market meeting with major global investment banks (IBs) and domestic banks to assess the impact of the Middle East crisis on domestic and international financial markets.

The meeting, presided over by International Economic Policy Director Moon Ji-seong, was attended by representatives from Goldman Sachs, Barclays, Deutsche Bank, BNP Paribas, Hana Bank, and KB Kookmin Bank.

Participants noted that the volatility of the won-dollar exchange rate has increased due to the external shock of the Middle East conflict, after having shown a downward trend in February this year.

However, they assessed that, given the competitiveness of Korean industries confirmed by the recent robust export performance and the country's sound external financial position, the fundamentals of the Korean economy remain very strong and foreign currency liquidity is at a healthy level. According to the Ministry of Economy and Finance, participants agreed that if the Middle East situation stabilizes, exchange rate volatility will subside quickly.

Director Moon stated that the launch of the Returnee Investment Account (RIA), increased overseas corporate dividends, the initial inclusion of Korea Treasury Bonds in the World Government Bond Index (WGBI), and the upcoming announcement of the "National Pension New Framework" later this month would all contribute to improving the foreign exchange supply and demand balance.

Director Moon added, "Despite these factors improving foreign exchange supply and demand, we are closely monitoring the market with a high level of vigilance because external uncertainties have not been resolved." He also stated that if won volatility expands excessively and diverges from Korea's economic fundamentals, bold measures will be taken to stabilize the market.

This content was produced with the assistance of AI translation services.