▲ This file image shows Finance Minister Koo Yun-cheol. (Yonhap)

finance minister-won valuation

Finance minister says verbal intervention possible over sharp won decline

TOKYO, March 14 (Yonhap) -- Finance Minister Koo Yun-cheol said Saturday the government may carry out verbal intervention to curb the won's sharp decline if necessary, as the conflict involving Iran has fueled volatility of the Korean currency.

The minister made the remarks at a meeting with South Korean correspondents in Japan after holding talks with his Japanese counterpart, Satsuki Katayama, in Tokyo earlier in the day.

The won, along with the euro and the yen, has suffered declines against the strong dollar, Koo said. "Stabilization in the Middle East situation would be key, but (the government) may carry out verbal intervention if necessary."

The minister said he and the Japanese minister discussed coordinated responses to any "disorderly" moves in the currency market, as well as close monitoring.

The two countries also expressed "serious concerns" over sharp declines in their currencies in a document adopted after the ministerial meeting.

They also shared the view that now is not the right time to discuss the future of their US$10 billion currency swap amid high volatility in financial markets, Koo noted, adding that the countries will hold further discussions.

Seoul and Tokyo forged the currency swap in December 2023 for a three-year term, with its expiration set for November this year.

The two ministers also pledged to cooperate closely on diversifying supply channels for rare earth materials as well as in the artificial intelligence sector.

(END)

[ⓒ K-VIBE. 무단전재-재배포 금지]