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BOK Chief Says Central Bank Holds Resources, Methods for Currency Intervention

Written: 2024-04-18 15:38:36Updated: 2024-04-18 15:55:26

BOK Chief Says Central Bank Holds Resources, Methods for Currency Intervention

Photo : KBS News

Bank of Korea(BOK) Governor Rhee Chang-yong reasserted that the central bank holds the necessary resources and methods of intervention to ease any volatility caused by the weakening Korean won against the U.S. dollar.

During a conversation on the margins of the annual meetings of the International Monetary Fund(IMF) in Washington on Wednesday, Rhee said the local currency has slightly diverted beyond a level acceptable to market fundamentals.

The BOK chief said the Korean won has faced an impact of not only a change in expectation over U.S. monetary policy, but also geopolitical tensions, as currencies in neighboring Japan and China are hit with many pressures.

Rhee, however, assessed the latest surge in the exchange rate to be a temporary phenomenon, different from a year-and-a-half ago when the U.S. Federal Reserve took a "giant step" of raising the policy interest rate by zero-point-75 percentage point.

Stating that the latest surge came amid a forecast that the Fed's first rate cut of the year may be delayed, the central bank governor said currency pressures imposed on emerging economies are expected to subside once uncertainties surrounding the Fed's rate cut dissipate.

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