BoK Deputy Governor: "Domestic Economy Shows Gradual Improvement... Facing High Uncertainty"

"Volatility in Domestic and International Financial and Foreign Exchange Markets to Increase if US Presidential Election and Uncertainty Persist"

Lee Seung-heon, Deputy Governor of the Bank of Korea [Photo by Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] Lee Seung-heon, Deputy Governor of the Bank of Korea, stated on the 4th, "Since the outbreak of the novel coronavirus disease (COVID-19), domestic and international economic conditions have been challenging," adding, "The domestic economy is gradually improving mainly through exports, but it faces high uncertainty."

Deputy Governor Lee conveyed this during his welcoming remarks at the '2020 Bank of Korea Monetary Policy Workshop' held on the 5th via real-time remote video conference. He said, "Recently, the global economy has shown weakened recovery momentum as COVID-19 resurges mainly in the United States and Europe."

He continued, "In particular, if uncertainty related to the U.S. presidential election persists, volatility in domestic and international financial and foreign exchange markets may increase, potentially affecting the recovery trend of our economy."

Deputy Governor Lee also mentioned liquidity supply measures in response to the COVID-19 situation, such as the base interest rate cut, Korea-U.S. currency swap, unlimited repurchase agreement (RP) purchases, and special loans to the corporate bond and commercial paper (CP) purchase facilities, evaluating that these measures have shown results. He said, "The Bank of Korea has taken unprecedented measures to respond to the rapid financial market instability and economic contraction caused by the unprecedented health crisis," adding, "Financial market instability has calmed, and the real economy is showing gradual improvement, indicating initial achievements."

Furthermore, he emphasized, "The harsh reality our economy faces after COVID-19 requires the Bank of Korea to carry out its responsibilities with a strong sense of duty and play a more proactive role," and "To enhance policy effectiveness, we have been strengthening two-way communication with various economic agents."

The Bank of Korea will hold the '2020 Bank of Korea Monetary Policy Workshop' from 3 p.m. on the 5th for professors in macroeconomics and finance from domestic universities. This event has been held since 2007, and this year it will be conducted via real-time remote video conference to prevent the spread of COVID-19.

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