Gov't to Reveal Track Record of Forex Intervention

      May 18, 2018 12:08

      The government will reveal records of its interventions into the domestic foreign currency market from March next year.

      Korea is on a U.S. watchlist of currency manipulators, either for issuing comments to sway trading activities or actually buying or selling currencies to keep the won low for exporters.

      The records to be published are net trades, which will be disclosed every six months until the first half of next year and every three months thereafter. The Ministry of Strategy and Finance and the Bank of Korea decided to take the step at a meeting Thursday.

      The government says it has opted to intervene in the forex market only during drastic fluctuations of the won, but forex authorities have not revealed their records in a bid to prevent speculative trading.

      The biggest reason for the decision was U.S. government pressure. The U.S. Treasury Department placed Korea on a list of currency manipulators in 2016, but lowered the classification to states under monitoring.

      The International Monetary Fund has been urging Korean authorities since 2016 to reveal their intervention records. Experts say Korea can no longer put it off since it is one of a small handful of members of the 35-nation OECD that does not reveal its records.

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