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| ▲ Finance Minister Koo Yun-cheol (Yonhap) |
finance minister-FX market
Finance chief cites 'one-sided' FX market movements, stressing easing imbalances
By Kim Han-joo
SEOUL, Jan. 14 (Yonhap) -- Finance Minister Koo Yun-cheol on Wednesday underscored what he called "one-sided" movements in the foreign exchange rate amid the continued depreciation of the Korean won, stressing the need to ease supply-demand imbalances.
Koo made the remarks in a prerecorded opening address delivered at a symposium on the foreign exchange market hosted by the Korean Economic Association. He is currently visiting the United States to attend a ministerial-level meeting.
"Despite the country posting a record high current account surplus, volatility in the foreign exchange market has increased, with one-sided movements in the Korean won," Koo said.
To address supply-demand imbalances in the market, including increased overseas securities investment, Koo said authorities are working to address the issue by focusing on improving economic fundamentals while simultaneously pursuing short-term market stabilization measures.
Calling the state pension fund an important participant in the market, Koo said the government and relevant authorities are seeking an optimal solution that balances foreign exchange market stability with investment efficiency.
As the Korean won continues to weaken against the U.S. dollar, the Ministry of Economy and Finance, the Bank of Korea, the National Pension Service (NPS), and the Ministry of Health and Welfare, which oversees the NPS, formed a joint consultative body late last year.
The authorities are working to devise a "new framework" aimed at aligning the NPS' investment returns with market stability and easing volatility in the foreign exchange market.
"We will swiftly move ahead with discussions on the NPS' new framework," Koo emphasized.
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