BOK: "International Financial Markets Mostly Stable During Seollal Holiday... Closely Monitoring Domestic and Global Situations"

[Asia Economy Reporter Seo So-jeong] The Bank of Korea recently announced that it will closely monitor the development of global risks and their potential impact on domestic finance and the economy amid increased market volatility.

On the morning of the 3rd, the Bank of Korea held a 'Situation Review Meeting' chaired by Deputy Governor Lee Seung-heon at 8 a.m. to review the international financial market situation during the Lunar New Year holiday period and discuss its potential effects on the domestic financial and foreign exchange markets.

Deputy Governor Lee Seung-heon stated, "Although the international financial markets remained generally stable during the Lunar New Year holiday, uncertainties in external conditions remain high due to factors such as the accelerated normalization of major countries' monetary policies and the geopolitical risks between Russia and Ukraine. Market volatility may increase depending on the release of economic indicators such as inflation and employment in major countries."

He urged, "We must not lower our guard and continue to closely monitor the development of global risks and their impact on domestic finance and the economy."

The meeting was attended by Deputy Governor Lee, the Director of the International Department, the Director of the Financial Market Department, the Public Relations Officer, the Head of the Investment Management Department, the Head of the Market Coordination Team, and the Head of the Foreign Exchange Market Team.

According to the Bank of Korea, during the Lunar New Year holiday period from the 31st of last month to the 2nd of this month, global risk aversion eased in the international financial markets, leading to rises in major countries' stock prices and interest rates, while the US dollar weakened.

Major countries' stock prices rose significantly due to improved corporate earnings and inflows of bargain hunting following recent sharp corrections. The 10-year government bond yields generally increased, and the US dollar showed weakness against major currencies. In the case of Korean assets, the CDS premium remained stable, and the Korean won (NDF) strengthened.

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