South Korea’s finance minister says more currency stabilization measures are on the way

SEOUL, Sept 25 (Reuters) – South Korea’s finance minister said the government would prepare more measures to stabilize the foreign exchange market, while downplaying the need for a currency swap deal with the United States .

The measures include using the government’s foreign exchange equalization fund to meet shipbuilding companies’ requests for foreign exchange hedging, thereby increasing the supply of dollars to the local market, Minister Choo Kyung-ho said on Sunday during from a television interview.

This is part of foreign exchange authorities’ efforts to mitigate volatility in the foreign exchange market, Choo said, in addition to a currency swap deal between the country’s central bank and a pension fund announced on Friday, as they see the South Korean won weakening at a faster rate recently than most peers.

On a question about the possibility of a currency swap agreement between the Bank of Korea and the US Federal Reserve, Choo said that it would certainly be useful for the local market, but is not yet necessary in the current situation. of the market.

Reporting by Jihoon Lee Editing by Chris Reese

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