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(2nd LD) Seoul to regularly reveal FX intervention records

2018/05/17 09:08

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(ATTN: CLARIFIES para 2; ADDS more details in paras 7-9)

SEJONG, May 17 (Yonhap) -- South Korea will reveal its records on currency market intervention biannually for one year and then switch to quarterly disclosures as part of efforts to minimize any negative impact on the market, the finance ministry said Thursday.

The disclosures will be made within three months after a reporting period, and the net amount of U.S. dollars used for selling and buying by the country's currency authorities will be disclosed, according to the ministry. The quarterly releases will begin in the third quarter of 2019.

The intervention records will be posted on the website of the Bank of Korea, and the first disclosure of interventions made during the second half of 2018 will be released in March 2019, it added.

"The currency rates should be determined in the market, but the government will maintain its stance that market stabilization steps are taken if there are one-sided movements," it said in a statement.

Seoul said earlier that the country is considering the detailed disclosure of its interventions in the foreign exchange market as part of a broader move to boost transparency and clear itself of suspicion of exercising undue influence on exchange rates.

South Korea's financial authorities have persistently claimed they do not interfere in the foreign exchange market but engage in "smoothing operations" against extreme one-sided movements.

South Korea has been releasing other key information, such as trade balance, money supply, exports and imports.

"The release will help remove unnecessary misunderstandings about our currency market operations, help build trust about Korea's policy and boost foreign exchange market stability," the ministry said.

It said authorities will beef up market monitoring and take stern measures against any speculative moves.

In April, Washington kept South Korea on its "monitoring list" but did not designate it as a currency manipulator.

Washington has vowed to aggressively keep tabs on and combat unfair currency practices, saying the United States cannot and will not bear the burden of an international trading system that, it claims, unfairly disadvantages American exports and gives an edge to its trading partners.

Finance Minister Kim Dong-yeon (L) outlines the government's FX intervention disclosure policy at an economy-related ministers meeting in Seoul on May 17, 2018. (Yonhap) Finance Minister Kim Dong-yeon (L) outlines the government's FX intervention disclosure policy at an economy-related ministers meeting in Seoul on May 17, 2018. (Yonhap)

sam@yna.co.kr

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