Government Moves to Stabilize Market Amid Exchange Rate Volatility Fueled by Middle East Tensions

With the won-dollar exchange rate experiencing significant volatility due to instability in the Middle East, the government has once again emphasized its efforts to stabilize the foreign exchange market. Moon Ji-sung, Director-General for International Economic Affairs at the Ministry of Economy and Finance, presided over a 'Foreign Exchange Market Meeting' on the 7th, attended by major global investment banks (IBs) and commercial banks, and reviewed recent market conditions and response strategies.

Participants agreed that the recent rise in the won-dollar exchange rate and widening volatility were impacts stemming from the external shock of the Middle East war.

Director-General Moon emphasized, "As external uncertainties persist, we are maintaining a high level of vigilance. If excessive won volatility occurs that is detached from our economy's fundamentals, we will pursue bold measures to stabilize the market." The government also plans to strengthen a government-wide response against false information that could agitate foreign exchange market instability.