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BOK chief vows to stabilize markets on possible volatility
By KH디지털2Published : Nov. 18, 2016 - 10:47
South Korea's central bank governor vowed Friday to take necessary steps to stabilize the markets in case of signs of volatility.
Bank of Korea Gov. Lee Ju-yeol made the comments in his meeting with heads of local banks, saying it is hard to predict what impact the recent US presidential election results will have on the markets for now.
Last week, Republican presidential candidate Donald Trump won the White House in an upset victory over his Democratic rival Hillary Clinton. It had an impact on the global financial markets due to increased uncertainties surrounding his policies.
Recent volatility in the domestic financial markets is part of a correction course following an "unexpected shock," in an apparent reference to Trump's victory. This phenomenon also occurs in major financial markets around the world, Lee said.
"We are more closely watching the financial markets than ever before, and we will take timely measures to stabilize the markets when there are concerns that market instability could spread," he said.
He also said South Korea is financially healthy enough to rebound from market volatility due to ample liquidity at local banks, the world's seventh-biggest size of foreign-exchange reserves and further room for monetary easing policy.
South Korea held $375.17 billion in foreign exchange reserves at the end of October.
Expectations are high that the US Federal Reserve could raise its interest rate next month.
Lee has said a possible US rate hike does not necessarily mean that the central bank will immediately raise its interest rates. The country's key rate stands at an all-time low of 1.25 percent. (Yonhap)
Bank of Korea Gov. Lee Ju-yeol made the comments in his meeting with heads of local banks, saying it is hard to predict what impact the recent US presidential election results will have on the markets for now.
Last week, Republican presidential candidate Donald Trump won the White House in an upset victory over his Democratic rival Hillary Clinton. It had an impact on the global financial markets due to increased uncertainties surrounding his policies.
Recent volatility in the domestic financial markets is part of a correction course following an "unexpected shock," in an apparent reference to Trump's victory. This phenomenon also occurs in major financial markets around the world, Lee said.
"We are more closely watching the financial markets than ever before, and we will take timely measures to stabilize the markets when there are concerns that market instability could spread," he said.
He also said South Korea is financially healthy enough to rebound from market volatility due to ample liquidity at local banks, the world's seventh-biggest size of foreign-exchange reserves and further room for monetary easing policy.
South Korea held $375.17 billion in foreign exchange reserves at the end of October.
Expectations are high that the US Federal Reserve could raise its interest rate next month.
Lee has said a possible US rate hike does not necessarily mean that the central bank will immediately raise its interest rates. The country's key rate stands at an all-time low of 1.25 percent. (Yonhap)
