Bank of Korea Governor Lee Chang-yong said on the 19th, “If the conflict between Iran and Israel does not escalate, the exchange rate will return to stability.”
Governor Lee, who is visiting the United States to attend the Spring General Meeting of the International Monetary Fund (IMF), said in a press conference that day, “If the war does not escalate, oil prices do not rise further , and if the Strait of Hormuz remains unblocked, I believe the exchange rate will go towards stability again.” analyzed.
Bank of Korea Governor Lee Chang-yong holds a meeting with domestic reporters in Washington, DC, USA on the 18th./Yonhap News
Governor Lee said, “We are in a situation where several uncertainties have exploded all at once,” adding, “Data is starting to emerge that shows that an Iranian attack on Israel and a US interest rate cut States is delayed more than expected, and the exchange rates in Asia as well as ours are weakening.”
Governor Lee noted that the finance ministers of Korea, the United States, and Japan share the same perception of the current situation of the foreign exchange market. Governor Lee said, “Like Japan, we formed a consensus that the rate of depreciation of the won currency was too fast under the current circumstances, and as we shared this view at the Korea-US-Japan Finance Ministers’ Meeting, the exchange rate. to stabilize,” adding, “After government intervention, “The stable exchange rate was shaken by Israel’s counterattack against Iran, but the situation has stabilized again with the news that the war will not escalate,” he said. Governor Lee said, “It is important that not only Japan and us, but also the United States collectively recognize that the pace of depreciation is in any way excessive,” and added, “It is a very meaningful result of part of consensus formation. .”
As for the possibility of Korea cutting interest rates before the United States, he said, “What the Monetary Policy Committee is most interested in is the rate of consumer price inflation,” and added, “We’re not sure if it’s r the rate of inflation in the second. half the year will fall to an average of 2.3%, but we are looking at this as a priority.”
As for why only the US economy is stronger relative to the global economy, Governor Lee said, “Some believe that finance plays a role, and some explain that (the economy) is sustained by labor supply due to the large number of immigrants. ” “Although the focus is on maintenance, the United States provides a direct subsidy to consumers and provides flexibility in employment, and there is some discussion as to whether this could be a source of rapid access to the development of new technology ,” he said.
Regarding China’s overproduction raised by the United States, Governor Lee said, “It’s overproduction relative to domestic demand, but if you think about exports, you might wonder why overproduction is this.” He added, “The problem of how to accept China’s low -product price is not only economic, but also negotiating “It will be solved through this,” he said.
Regarding the opposition’s request for a supplementary budget, Governor Lee said, “Even if the current funding is good, it is a short-sighted view when considering the welfare costs due to aging.” low birth rate, it cannot be solved in the short term, but must be solved through restructuring.”
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