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BoK Board Member States USD/KRW Unlikely To Return To Pre-Pandemic Level

KRW

BoK Board member Suh Youn-kyung has stated that USD/KRW is unlikely to experience a significant decline to pre-pandemic levels due to a number of factors: deterioration in the trade balance, aging population and growing offshore investments.

  • Suh noted that the trade surplus will not be as structurally positive given increased competition with China, as well as the aging population.
  • Further expansion in offshore investment (both portfolio and direct) will keep demand for USDs higher.
  • The increase FDI is expected to see dividend inflows rise though. Suh also noted Korea is not at risk from sudden capital outflows.

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