Bank of Korea Holds Market Situation Review Meeting on Middle East Crisis on 15th
Timely Implementation of Market Stabilization Measures if Volatility Increases
The Bank of Korea announced that it will promptly implement market stabilization measures if there is a risk of increased volatility in the foreign exchange and financial markets related to Iran's attack on Israel.
On the morning of the 15th, the Bank of Korea held a "Market Situation Review Meeting" chaired by Deputy Governor Yu Sang-dae to assess the impact of Iran's attack on Israel on domestic and international financial markets.
On the 12th, the international financial markets saw heightened tensions in the Middle East due to the possibility of Iran's airstrike on Israel, leading to a decline in major countries' government bond yields and stock prices. The US dollar and international oil prices showed strength.
Regarding this, Deputy Governor Yu Sang-dae of the Bank of Korea said, "This Middle East situation is expected to strengthen the global risk-off trend for the time being," adding, "Depending on the intensity of Israel's response and whether neighboring countries intervene, volatility in domestic and international financial markets may increase."
He continued, "Depending on future movements in international oil prices and exchange rates, changes in the global supply chain situation, and their ripple effects, uncertainties in the real economy such as domestic and international growth and inflation may also expand."
Regarding this situation, Deputy Governor Yu stated, "We will operate a 24-hour monitoring system with special vigilance to closely examine the future developments and their impact on domestic and international finance and economy," and added, "If there is a risk of increased volatility in the foreign exchange and financial markets, we will promptly implement market stabilization measures."
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