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| ▲ Bank of Korea (BOK) Gov. Rhee Chang-yong (R) speaks during a parliamentary interpellation session in Seoul on Dec. 17, 2024. (Yonhap) |
BOK chief-potential FX crisis
BOK chief snubs concerns over potential FX risks
SEOUL, Dec. 17 (Yonhap) -- The chief of South Korea's central bank said Tuesday that concerns over the potential foreign exchange crisis in the wake of presidential impeachment-triggered political chaos are overblown as the country has a vast pool of foreign reserves.
In a parliamentary interpellation session, Bank of Korea (BOK) Gov. Rhee Chang-yong said there are no problems in borrowing money in the foreign exchange market.
"When we think of default on debt payments, such concerns (of a potential foreign exchange crisis) are excessive," Rhee said.
The BOK governor insisted the impact of the presidential impeachment on the economy will be limited.
The local currency has weakened sharply after President Yoon Suk Yeol declared a short-lived martial law early this month.
Over the weekend, Yoon was impeached by parliament over insurrection.
"It seems to be premature to assess the impact, but any impacts will be limited if the politics and economic policies remain separate, just as shown in the previous two cases of presidential impeachments," he said.
The country's foreign reserves came to US$415.39 billion as of end-November, down $300 million from a month earlier, according to BOK data.
South Korea ranked as the world's ninth-largest holder of foreign reserves at end-November. China topped the list, followed by Japan, then Switzerland, India and Russia, the BOK said earlier.
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