(Seoul=Yonhap Infomax) Yoon Woo Shin – South Korea’s Ministry of Economy and Finance, the Bank of Korea, the Ministry of Health and Welfare, and the National Pension Service (NPS) have officially launched a four-party consultative body aimed at curbing sharp declines in the Korean won and stabilizing the foreign exchange market amid the NPS’s expanding overseas investments.
The Ministry of Economy and Finance announced on the 24th that the four institutions held their inaugural meeting and will continue discussions within the consultative body to seek measures that balance the NPS’s investment returns with the stability of the foreign exchange market.
The move comes as the dollar-won exchange rate surged past the 1,470 won level, reaching its highest point since April, prompting authorities to strengthen cooperation with the NPS—a major player in the FX market—to ensure market stability.
Last year, when the dollar-won rate spiked amid a state of emergency, the NPS contributed to stabilizing the exchange rate through currency swaps and hedging arrangements in coordination with FX authorities.
ywshin@yna.co.kr
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