Vice Minister Gi Jae: "Continued Exchange Rate Decline... Strengthening Market Stabilization Measures if Necessary"

Macroeconomic and Financial Meeting Held on the 27th

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Kim Yongbeom, the 1st Vice Minister of the Ministry of Economy and Finance, commented on the recent decline in the exchange rate in the foreign exchange market, stating, "The government is closely monitoring market trends and plans to strengthen market stabilization measures if necessary."

At the macroeconomic and financial meeting held on the 27th at the Seoul Banking Hall, Vice Minister Kim said, "The exchange rate has fallen by about 60 won in a month and a half, from the 1,180 won level in mid-September."

He added, "Recently, there have been movements driven solely by market sentiment, regardless of global currency trends such as the euro and yuan or domestic foreign exchange supply and demand. The government will closely monitor market trends and strengthen market stabilization measures if necessary."

Vice Minister Kim expressed concern, saying, "In the global financial market, last week, the daily number of COVID-19 cases in major advanced countries such as the United States and Europe reached new highs, causing major stock markets to decline and increasing concerns about a global economic recession due to restrictions on economic activities." He noted, "Some experts warn that the U.S. economy could fall into a double-dip recession."

However, regarding the domestic stock market, he said, "While responding to global stock market movements, it is showing a relatively favorable trend."