Choo Kyung-ho: "Premature Mention of Korea-US Currency Swap Is Inappropriate"

"Our Foreign Exchange Soundness Generally No Problem"

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho. [Image source=Yonhap News]

[Asia Economy Reporter Lim Chun-han] Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho stated on the 21st that it is "inappropriate to hastily mention" the necessity of concluding a Korea-US currency swap agreement.

In response to a related question from Bae Jun-young, a member of the People Power Party, during the National Assembly's economic sector government questioning session that day, Deputy Prime Minister Choo said, "It is clear that having a Korea-US currency swap would help manage the soundness of our foreign exchange," but added, "However, there is the other party involved, and the US also has a division of roles between its central bank and government."

Deputy Prime Minister Choo stated, "What is clear is that during the last Korea-US summit and when I met with US Treasury Secretary Janet Yellen, both countries clearly confirmed that 'we will closely cooperate and monitor foreign exchange market trends between the two countries, and if necessary, have the capacity to utilize liquidity supply facilities,'" adding, "That stance and spirit of cooperation between the two countries remain valid even now."

When asked whether he proposed the conclusion of a Korea-US currency swap to President Yoon Seok-yeol, who is scheduled to hold a Korea-US summit in New York on the occasion of attending the UN General Assembly, Deputy Prime Minister Choo refrained from answering, saying, "I do not go into details on each matter...".

In response to repeated questions about the possibility of concluding a Korea-US currency swap at the Korea-US summit, Deputy Prime Minister Choo said, "Mentioning that itself now could affect the market in various ways, so please understand that I am not in a position to discuss matters related to the summit here."

Deputy Prime Minister Choo explained, "Objectively speaking now, international credit rating agencies, international financial organizations under them, and foreign governments generally assess that there are no significant problems regarding our foreign exchange soundness or various uncertainties in the foreign exchange market."

Deputy Prime Minister Choo added, "However, since several uncertainties such as rapidly rising high interest rates and the resulting exchange rate increases are growing, although the possibility is small, we are reviewing various risk factors," and stated, "The central bank, financial authorities, and we regularly meet to review countermeasures and are prepared to take necessary actions if any market instability factors arise."

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