Bank of Korea Governor Says Won Liquidity Adequate, Currency Swap Mainly Symbolic on July 9

Bank of Korea Governor Shin Hyun-song said on July 9 that the current won liquidity is not lacking, despite acknowledging that a currency swap arrangement would provide symbolic and psychological benefits to the currency. Appearing before parliament's fiscal and economic committee, Shin stated that currency swaps are primarily designed to provide liquidity during shortages, but such a shortage does not currently exist. He attributed recent won weakness to U.S. monetary policy shifts boosting the dollar and foreign investor portfolio rebalancing, noting that long-term fundamentals support won strength given South Korea's continued current account surplus.
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