South Korea sold $13.6 billion in Q1 to stabilize FX market
Quick Look
South Korean authorities sold a net US$13.6 billion in the first quarter, marking the sixth consecutive quarter of dollar selling, to stabilize the foreign exchange market as the won weakened against the dollar following the U.S.-Iran war.
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Why It Matters
South Korean authorities sold a net $13.6 billion in Q1 2025, marking the sixth consecutive quarter of dollar selling, to stabilize the foreign exchange market. This intervention followed the Korean won's depreciation against the U.S. dollar, partly due to the U.S.-Iran war.
SEOUL, June 30 (Yonhap) -- The South Korean authorities sold a net US$13.6 billion in the first quarter to stabilize the foreign exchange market, central bank data showed Tuesday.
It marked the sixth consecutive quarter of net dollar selling since the fourth quarter of 2024, bringing the cumulative total to a net $45.35 billion over the period, according to data released by the Bank of Korea (BOK).
The Korean won weakened to 1,530.1 won against the U.S. dollar at the end of March from 1,439 won at the end of last year.
South Korea's foreign reserves fell by nearly $4 billion in March amid the authorities' intervention in response to the sharp depreciation of the Korean won following the outbreak of the U.S.-Iran war.
The March decline was the largest monthly drop in foreign reserves in 11 months since April last year, when they fell by $5 billion.
Open Questions
- What is the current status of the U.S.-Iran war?
- What are the BOK's future intervention strategies?
- What is the target exchange rate for the won?
