Deputy Prime Minister to Deliver "Foreign Exchange Market Stabilization" Message at Emergency Briefing Tomorrow

원본보기 아이콘

As the won-dollar exchange rate continues to remain above 1,470 won, creating an unstable environment, Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol is scheduled to issue a message regarding the stabilization of the foreign exchange market on November 26.

On November 25, the Ministry of Economy and Finance announced to the press, "Deputy Prime Minister Koo will hold a press briefing tomorrow at 10 a.m. to address the recent economic situation, including the foreign exchange market." This move is intended to directly explain measures for stabilizing the exchange rate, as market concerns over the recent high exchange rate have grown.

Authorities have recently been making a series of statements aimed at stabilizing the foreign exchange market. At a market situation review meeting on November 14, Deputy Prime Minister Koo stated, "We are preparing measures to stabilize the exchange rate," signaling verbal intervention. He also held a press briefing on November 19, where he said, "We are working with major foreign exchange supply and demand entities to ensure that excessive uncertainty or instability does not occur in the exchange rate."

The Ministry of Economy and Finance, together with the National Pension Service, the Ministry of Health and Welfare (the responsible ministry), and the Bank of Korea, formed a four-party consultative body and held its first meeting to assess the impact of the National Pension Service's overseas investment expansion on the foreign exchange market.

Foreign exchange authorities have also recently held meetings with foreign exchange managers at major securities firms. During these discussions, authorities expressed concerns that securities firms are processing a large volume of foreign exchange orders related to overseas stock transactions immediately after the market opens at 9 a.m., which could increase exchange rate volatility early in the session. Authorities requested that settlement demand be spread out to mitigate this effect.

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.