To Curb Rapid Rise in Won/dollar Rate
The Bank of Korea announced on June 30 that the foreign exchange authorities net-sold approximately US$5.85 billion in the first quarter of this year in order to deal with the COVID-19 pandemic.
In that quarter, the pandemic led to a rapid rise in won-dollar exchange rate and forex market fluctuations. Under the circumstances, the forex authorities sold the U.S. dollar to defend the exchange rate.
The Bank of Korea has disclosed its forex market intervention history since its past agreement with the Ministry of Economy and Finance. However, details such as total sale and total purchase are not subject to the disclosure. Data on the second quarter of this year is scheduled to be made public at the end of September.
Yoon Young-sil
contact@businesskorea.co.kr