[Asia Economy Sejong=Reporter Kwon Haeyoung] Kim Sung-wook, Deputy Minister for International Economic Affairs at the Ministry of Economy and Finance, stated on the 28th, "The recent foreign exchange supply and demand (imbalance) issue is due to domestic actors, not offshore ones."
Deputy Minister Kim visited the Ministry of Economy and Finance press room in the afternoon and said, "The exchange rate is not experiencing sharp fluctuations due to speculative movements offshore."
He explained, "In August, it was somewhat true that the exchange rate was attacked by speculative movements offshore, but that is not the case now," adding, "The entities significantly affecting our foreign exchange market are not those outside the country but domestic actors." He further stated, "I do not want to criticize our export-import companies and citizens for 'hoarding dollars,' as this is a common challenge faced by all countries worldwide."
On the same day, the won-dollar exchange rate closed at 1,439.9 won, up 18.4 won, in the Seoul foreign exchange market. During the session, it surpassed 1,440 won, marking the highest point in 13 years and 6 months since March 16, 2009 (1,488.0 won).
Previously, Kim Yong-beom, former First Deputy Minister of the Ministry of Economy and Finance, argued that foreign exchange authorities should take measures to restrict dollar hoarding. Former Deputy Minister Kim wrote on his Facebook, "At a time when sentiment is crucial, it is too easy and unlimited for domestic residents to quickly bet on their own currency's depreciation," "While it is natural and not blameworthy for domestic residents to invest in overseas assets in the era of foreign exchange liberalization, the fact that betting on the depreciation of the domestic currency is unlimited needs to be reconsidered."
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