BOK Warns of FX Volatility Amid Middle East Tensions

BOK Warns of FX Volatility Amid Middle East Tensions

Bank of Korea Governor Rhee Chang-yong emphasized the risks associated with excessive foreign exchange volatility during a press conference in Seoul. The central bank has expressed concern over the sharp decline of the Korean won and the instability in financial markets as tensions in the Middle East escalate.

The won briefly rose above 1,500 won per dollar but remains stable in terms of liquidity and key financial indicators such as borrowing spreads and credit default swap premiums are also stable. The BOK will continue to closely monitor the situation and respond as needed to ensure economic stability,