[Alpha Biz= Reporter Kim Sangjin] On the 20th, financial regulators will gather executives from domestic and foreign banks responsible for foreign exchange to review risks in the forex sector. The meeting is scheduled to discuss the impacts of external uncertainties such as the upcoming U.S. presidential election, China’s economic stimulus measures, and ongoing geopolitical risks.
According to the financial sector, the Financial Supervisory Service (FSS) will convene the meeting, chaired by Park Chung-hyun, Vice Chairman of Banking Supervision, to evaluate the liquidity situation in foreign exchange markets. The FSS will hear banks’ projections for the forex and foreign currency markets, discuss the impact of rising exchange rates, and review response strategies.
Additionally, the FSS plans to assess the liquidity status of individual banks and discuss their management plans.
Currently, the FSS is evaluating the foreign exchange market as stable, with smooth refinancing and good dollar liquidity. However, with the possibility of further increases in the exchange rate, the agency is closely monitoring the market for potential risks.
Banks are also re-evaluating their foreign currency procurement strategies, especially with the U.S. presidential election approaching.
The won-dollar exchange rate has recently hovered above the psychological threshold of 1400 won. On the 5th, it was around 1370 won, but after Donald Trump’s presidential election victory, the dollar surged, briefly surpassing 1410 won on the 13th, marking a two-year high.
In addition to forex market monitoring, financial regulators are also strengthening measures against volatility in the cryptocurrency market, focusing on unfair trading activities and the spread of rumors and false information.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
[저작권자ⓒ 메디컬투데이. 무단전재-재배포 금지]
How might upcoming geopolitical events shape investor sentiment toward the South Korean forex market, and what indicators should be monitored for potential market shifts?
As a website editor for world-today-news.com, I have prepared the following interview questions for our guests:
1. Can you provide an overview of the current foreign exchange situation in South Korea and what are the most significant external uncertainties affecting it?
2. How are local and foreign banks coping with the recent surge in the won-dollar exchange rate, and what strategies are they considering for future procurement of foreign currencies?
3. What are the concerns regarding geopolitical risks and their potential impact on the forex market in South Korea?
4. What measures are financial regulators taking to ensure stability in the forex market, and how do these compare to their response during previous crises?
5. What role does the possible rise of the U.S. presidential election play in the forex market, and how are banks preparing for it?
6. Can you discuss the FSS’s recent focus on cryptocurrency market volatility and its implications for financial stability?
7. Do you see any potential risks or opportunities for the South Korean economy in the context of global economic recovery post-pandemic, and how might this affect the forex market?
8. In your opinion, what factors should investors consider when making decisions about investing in the forex market during these uncertain times?
The thematic sections of the interview would be:
Section 1: Overview of the Current Foreign Exchange Situation in South Korea
Section 2: Strategies for Procuring Foreign Currencies by Banks
Section 3: Geopolitical Risks and Their Potential Impact on the Forex Market
Section 4: Financial Regulators‘ Response to Maintaining Market Stability
Section 5: The Role of the U.S. Presidential Election in the Forex Market
Section 6: FSS’s Focus on Cryptocurrency Volatility
Section 7: Economic Recovery and Its Implications for the Forex Market
Section 8: Investment Considerations in the Forex Market During Uncertain Times
