According to people familiar with the matter, as the authorities step up efforts to stabilize the Korean won, the National Pension Service of Korea has resumed strategic foreign exchange hedging operations. According to reports, the NPS restarted the plan after extending the currency swap agreement and temporary strategic hedging mechanism for one year. The plan was originally scheduled to expire at the end of this year. According to the arrangement, NPS provides the Bank of Korea to exchange Korean won for US dollars, so there is no need to buy dollars on the spot market, thereby relieving the pressure on exchange rate demand. NPS will use dollars received from the Bank of Korea for new overseas investments or hedge existing assets by selling these dollars. NPS actually became a net seller of the US dollar, which helped support the won.

According to people familiar with the matter, as the authorities step up efforts to stabilize the Korean won, the National Pension Service of Korea has resumed strategic foreign exchange hedging operations. According to reports, the NPS restarted the plan after extending the currency swap agreement and temporary strategic hedging mechanism for one year. The plan was originally scheduled to expire at the end of this year. According to the arrangement, NPS provides the Bank of Korea to exchange Korean won for US dollars, so there is no need to buy dollars on the spot market, thereby relieving the pressure on exchange rate demand. NPS will use dollars received from the Bank of Korea for new overseas investments or hedge existing assets by selling these dollars. NPS actually became a net seller of the US dollar, which helped support the won.