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(LEAD) S. Korea sells US$187 mln in FX market intervention in H2 2018

All Headlines 16:20 March 29, 2019

(ATTN: UPDATES with numbers throughout; RECASTS headline, paras 1-4)

SEOUL, March 29 (Yonhap) -- South Korea sold a net US$187 million worth of foreign currencies to stabilize the market in the latter half of last year, the central bank said Friday.

The Bank of Korea (BOK), which posted the information on its website, said the funds were used to deal with sudden sharp fluctuations that can negatively impact the economy.

It is the first time that South Korea made public such records in order to improve transparency in its economic and monetary policies.

The Korea won hovered around a range of 1,100-1,150 won against the U.S. dollar over the six-month period, with the average daily variation of the won-dollar rate coming to 4.0 won.

In May last year, Asia's fourth-largest economy decided to disclose the half-yearly turnover of its foreign exchange market operations in an effort to clear itself of suspicions of exercising undue influence on exchange rates to support exports.

The International Monetary Fund and the United States have long demanded South Korea regularly reveal its currency market intervention records.

In particular, Washington kept South Korea on its "monitoring list," citing the latter's allegedly unfair currency practices.

South Korea's financial policymakers have consistently claimed they do not interfere in the foreign exchange market but only engage in "smoothing operations" against extreme one-sided movements.

(LEAD) S. Korea sells US$187 mln in FX market intervention in H2 2018 - 1


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