S.Korea finance minister says more FX stabilizing measures on the way By Reuters

SEOUL (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 arrangement with the United States.

The measures include utilizing the government’s foreign exchange equalization fund to meet shipbuilding companies’ FX hedging demands, thereby increasing dollar supply in the local market, minister Choo Kyung-ho said during a televised interview on Sunday.

It is part of FX authorities’ efforts to ease volatility in the FX market, Choo said, in addition to a currency swap arrangement between the country’s central bank and a pension fund announced on Friday, as they are seeing the South Korean won recently weakening at a faster pace than most peers.

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