Koo Yun-cheol: "We are monitoring the exchange rate with a heightened sense of vigilance"

Korea Economic Daily

Summary

Deputy Prime Minister Koo Yun-cheol said he is keeping vigilant watch, checking daily, and monitoring the exchange rate.
He said the current exchange-rate situation has been affected by shocks from external variables, and that it is something that could change if the external shocks stabilize.
Koo cited $400 billion in foreign exchange reserves and more than $1 trillion in foreign-currency assets including the private sector, adding that the United States perceives Korea as not short of dollars.

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Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol said on the 4th regarding the exchange rate that he is “monitoring it by checking it day by day with a heightened sense of vigilance.”

Koo made the remarks in response to a related question from Rep. Park Sung-hoon of the People Power Party at a plenary meeting of the National Assembly’s Special Committee on U.S. Investment.

He said, “The current situation has been hit by shocks driven by external variables.”

Koo added, “If those external shock factors stabilize quickly, things could change.”

In response to an argument that “a Korea–U.S. currency swap is necessary,” he said, “Foreign exchange reserves are at a level exceeding $400 billion, and if you include the private sector, Korea holds more than $1 trillion in foreign-currency assets.” On the currency-swap issue, he added, “The United States has the perception that Korea is not short of dollars.”

Noh Jeong-dong, Hankyung.com reporter dong2@hankyung.com