[Asia Economy Reporter Eunbyeol Kim] On the 31st, the foreign exchange authorities announced that the net transaction volume, calculated by subtracting the amount of dollar sales from the amount of dollar purchases in the fourth quarter of last year, recorded 0.0 billion dollars.
The Bank of Korea and the Ministry of Strategy and Finance disclosed the details of market stabilization measures for the fourth quarter of last year on their websites on the 31st. The foreign exchange authorities have been disclosing foreign exchange market intervention details since March of last year (targeting the second half of 2018). Since the end of last year (targeting the third quarter of 2019), they have announced market stabilization measures on a quarterly basis.
As the won-dollar exchange rate fluctuation was not significant in the fourth quarter of last year, it is interpreted that the foreign exchange authorities did not particularly engage in dollar purchases or sales. Previously, in the third quarter of last year, the foreign exchange authorities had net sold 2.87 billion dollars. In the first half of last year, they net sold 3.8 billion dollars.
The foreign exchange authorities allow the exchange rate to be determined by the market but take market stabilization measures using foreign exchange reserves (including the Foreign Exchange Equalization Fund) in case of rapid rises or falls. The measures are conducted in both directions, sales and purchases.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
