Lee Chang-yong, BOK Governor: "Exchange Rate Rise Due to Dollar Strength, Stabilization Measures If Volatility Increases"

by Lee Changhwan

Published 12 Apr.2024 11:45(KST)

Lee Chang-yong, Governor of the Bank of Korea, is presiding over the Monetary Policy Direction Decision Meeting of the Monetary Policy Committee held on the 12th at the Bank of Korea in Jung-gu, Seoul. Photo by Joint Press Corps

Lee Chang-yong, Governor of the Bank of Korea, stated that the recent rise in the won-dollar exchange rate is not a significant problem for the Korean economy.

At a press conference held on the 12th after the Monetary Policy Committee decided to keep the base interest rate unchanged, Governor Lee explained, "The current rise in the won-dollar exchange rate is due to the strengthening of the dollar as expectations for the timing of the US interest rate cuts have been pushed back."

He added, "Not only the strong dollar but also the depreciation pressures on the Japanese yen and the Chinese yuan in neighboring countries are affecting the won."

However, he emphasized, "Unlike in the past, with the increase in overseas investments by Seohak Gaemi (Korean individual investors investing abroad) and pension funds, and the growth of Korea's net overseas assets, an advanced country-type foreign exchange market has been established," adding, "Economic crises caused by exchange rate fluctuations like before will not occur."