Korea unlikely to be on U.S. currency manipulator list

Korea will likely not be included on the upcoming U.S. currency manipulator list despite rising trade tensions between the two long-term allies, the central bank chief said Monday.

“According to U.S. law, there is a low possibility that Korea will be designated as a currency manipulating country,” Bank of Korea Gov. Lee Ju-yeol said in a statement submitted to parliament ahead of his confirmation hearing. “But it’s hard to predict as the issue is closely related to U.S. trade policies.”

Next month, the U.S. Treasury Department is set to release its semiannual currency report.

Last October, the United States kept Korea on its “monitoring list” for currency practices but did not designate Seoul as a currency manipulator.

Korea’s financial authorities have claimed they do not interfere in the foreign exchange market but engage in “smoothing operations” against extreme fluctuations.

Ahead of the April report, however, Korea is considering disclosing details of its intervention in the foreign exchange market in a move to boost transparency upon recommendations by the International Monetary Fund.

Lee will undergo a confirmation hearing on Wednesday as he was reappointed by President Moon to head the Bank of Korea for another four years. His second term will start in April.

Yonhap