Lee Chang-yong "Exchange Rate Will Fall When Economic Policies Function Normally"

by Lee Changhwan

Published 17 Dec.2024 19:48(KST)

Bank of Korea Governor Lee Chang-yong is attending the plenary meeting of the Planning and Finance Committee held at the National Assembly on the 17th, responding to questions from lawmakers. Photo by Kim Hyun-min

Lee Chang-yong, Governor of the Bank of Korea, on the 17th forecasted that the current won-dollar exchange rate level will "naturally decrease if economic policies function normally."

Governor Lee made this remark during an emergency inquiry at the National Assembly's Planning and Finance Committee in the afternoon, assuming "there are no further shocks to the political process." However, he stated that it is "not easy to predict" the specific exchange rate level.

Regarding foreign exchange reserves, he expressed expectations of no significant fluctuations. Governor Lee responded this way to a question from Park Soo-young of the People Power Party, asking about the status of foreign exchange reserves after the emergency martial law situation.

Governor Lee also commented on global credit rating agencies' evaluations of the Korean economy, saying, "There is currently no change, and they seem to be observing us."

He emphasized about the credit default swap (CDS) premium level, "It has currently risen by about 3 basis points, but since this is lower than the average at the beginning of the year, it is accurate to say there is no significant change."