Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
Foreign exchange authorities tighten monitoring on currency market
U.S banknotes are stacked up for inspection at a counter-forgery center in Hana Bank in Seoul, Monday. Yonhap
By Yi Whan-woo
Won-dollar rate closes at 1,393.6, up 5.6 from Friday's close
By Yi Whan-woo
Foreign exchange authorities are tightening monitoring on the currency market, as the won-dollar exchange rate keeps breaching thresholds and is approaching 1,400 won, another psychologically significant level.
On Monday, the Korean currency closed at 1,393.6 won against dollar, weakening 5.6 won from Friday's close in its months-long losing streak.
Sources familiar with the matter said Monday that the authorities have asked commercial banks to report the status of dollar transactions and foreign exchange-related positions every hour.
The measure follows repeated verbal warnings issued recently by the authorities that they will closely monitor whether speculative bets are being made in the market.
“It can be said that we have been asked to report transactions in real time,” an industry source said, noting that the banks were previously required to report three times a day: in the morning, during lunch break and after the markets close.
As part of efforts to curb market volatility, authorities are also keeping an eye on exporters hoarding dollars after receiving payments in U.S. currency instead of converting them to the local currency.
“Excessive hoarding is being touted as a major reason for the won's sharper depreciation and exporters are thus urged to cooperate,” a source said.
Amid the soaring won-dollar rate, a senior presidential secretary said last week that a currency swap deal between Korea and the U.S. could be on the agenda when President Yoon Suk-yeol meets U.S. President Joe Biden this week in New York.