Net Sale of $15.4 Billion for Exchange Rate Stability in Q2... Largest Since 2019

The Bank of Korea "Implements Stabilization Measures"

[Image source=Yonhap News]

[Asia Economy Reporter Park Jun-yi] The foreign exchange authorities sold a net total of 15.49 billion dollars in the foreign exchange market during the second quarter (April to June) to stabilize the market, the Bank of Korea announced on the 30th.

This is the largest net sale since the Bank of Korea and the Ministry of Economy and Finance began disclosing the quarterly net difference between total dollar purchases and sales by foreign exchange authorities starting from the third quarter of 2019.

An official from the Bank of Korea explained, "This result is based on the consistent stance of implementing stabilization measures when market imbalances occur, under the principle of 'respecting the decision-making function' of the foreign exchange market."

Regarding the decrease in foreign exchange reserves due to stabilization measures in the foreign exchange market, the official stated, "Considering net external assets, current account surplus, and low short-term external debt ratio, the level is judged to be sufficient," adding, "A certain decrease in foreign exchange reserves is inevitable in the process of responding to recent increased exchange rate volatility."