Martial Arts - Samsung Futures 'COVID-19 Currency Risk Response Strategy' Live Broadcast

[Asia Economy Reporter Hwang Yoon-joo] The Korea International Trade Association and Samsung Futures held an online talk concert on "COVID-19 Foreign Exchange Risk Response Strategies" on the 22nd.

The event, broadcast live nationwide via YouTube, featured speakers including Yoon Chan-ho, head of the Foreign Exchange Strategy Team at Samsung Futures, Jeon Seung-ji, researcher at Samsung Futures Research Center, and Lee Seok-jae, foreign exchange consultation specialist at the Trade Association. They analyzed the recent causes of the sharp rise in exchange rates, the possibility of another surge, and the response directions of foreign exchange authorities and companies. Additionally, practical foreign exchange risk management methods were presented, such as foreign exchange hedging methods for the trade industry struggling with increased exchange rate volatility and how to apply exchange rates when calculating export and import unit prices.

Jeon Seung-ji, researcher at Samsung Futures, stated, "Since mid-March, the foreign currency funding market began to tighten, and securities firms had no choice but to continue buying dollars at high prices to pay margins for equity-linked securities (ELS) and derivative-linked securities (DLS) products, which was the main cause of the sharp rise in the won-dollar exchange rate." He added, "If the COVID-19 situation gradually improves, the exchange rate is expected to stabilize somewhat in early Q3, but due to uncertainties such as concerns over a resurgence of COVID-19, delayed recovery of the real economy, and US-China conflicts, there is a risk of another increase, so it is necessary to prepare for high volatility."

Yoon Chan-ho, team leader at Samsung Futures, advised, "Import and export companies can enhance management stability by appropriately using hedging products that fix the settlement exchange rate according to timing." He explained, "Forward contracts can be traded through banks, foreign exchange fluctuation insurance through the Korea Trade Insurance Corporation, and currency futures through futures companies."

As the talk concert was conducted live, viewers flooded the event with real-time questions via comments. In response to the question, "Which currency is advantageous for transactions when exchange rate fluctuations are large?" Lee Seok-jae from the Trade Association said, "Looking at the weekly, monthly, and quarterly exchange rate volatilities by currency, the yen has the highest volatility, followed by the euro, dollar, and yuan." He emphasized, "It is necessary to optimize the settlement currency to trade in currencies with relatively low exchange rate volatility."

This talk concert can be viewed again on the Trade Association's YouTube channel, and companies requiring individual foreign exchange consultations can receive free one-on-one consultations with foreign exchange experts through the Trade Association's 'TradeSOS Trade Practice Consultation Service.'

This content was produced with the assistance of AI translation services.