SEOUL – The Bank of Korea announced on Friday that it had engaged in significant currency market interventions in the last quarter of the previous year, purchasing a net US$1.98 billion to smooth market operations amid the strengthening of the Korean won against the U.S. dollar. This marks the central bank's first net purchase of dollars in three years, breaking a streak of nine consecutive quarters of selling dollars since the third quarter of 2021.
According to Yonhap News Agency, this shift in strategy comes as the Korean won appreciated against the dollar, trading at 1,288 won to the greenback at the end of the year, a notable increase from 1,349.3 won three months prior. The central bank's move to buy dollars in the fourth quarter contrasts with its net sale of $3.52 billion during the third quarter, reflecting its ongoing efforts to maintain market stability.