Bank of Korea: "Exchange Rate Temporarily Exceeded 1,500 Won... Dollar Liquidity and CDS Premium Remain Stable"

The Bank of Korea stated on the 4th, "Although the won-dollar exchange rate temporarily exceeded 1,500 won overnight, this was only a temporary phenomenon," adding, "Unlike in the past, dollar liquidity is currently abundant, and Korea's external borrowing spread and credit default swap (CDS) premium remain at stable levels."

Lee Chang-yong, Governor of the Bank of Korea, is presiding over the Monetary Policy Committee plenary meeting at the Bank of Korea headquarters in Jung-gu, Seoul, on February 26, 2026. Photo by Joint Press Corps

On this day, the Bank of Korea held a 'Middle East Situation Task Force (TF) Meeting,' presided over by Governor Lee Chang-yong, and made this announcement.

During the meeting, the background behind the sharp fluctuations in the exchange rate in the London and New York markets the previous day was discussed, and the volatility of exchange rates in Korea was compared and reviewed against those in major countries.

The Bank of Korea stated, "There is a possibility that heightened volatility of key financial market price variables such as exchange rates, interest rates, and stock prices will persist for the time being, depending on developments in the Middle East," and decided to strengthen its monitoring efforts.

Furthermore, it added, "Even after considering external factors, we will closely examine whether the won exchange rate and interest rates are excessively deviating from domestic fundamentals such as the current account balance. If necessary, we will cooperate with the government to respond in a timely manner to prevent market sentiment from becoming excessively one-sided."

Meanwhile, although Governor Lee was originally scheduled to depart on the morning of this day to attend the Bank for International Settlements (BIS) Governors' Meeting and the International Monetary Fund (IMF) Asia Conference, he postponed his departure to preside over the meeting.

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