SEOUL, Oct. 1 (Xinhua) -- South Korea and the United States reaffirmed their basic principle of exchange rates policy not to manipulate the value of their own currencies for the purpose of hindering the effective balance of payments adjustment or gaining an unfair competitive advantage, the South Korean Ministry of Economy and Finance said Wednesday.
The agreement was reached following the latest series of talks between the financial authorities of the two countries, separate from the trade negotiations, according to ministry.
Seoul and Washington agreed that any macroprudential or capital flow measures will not target exchange rates for competitive purposes, and that government investment vehicles will invest abroad only for risk-adjusted return and diversification purposes.
The two sides reaffirmed that any intervention in the foreign exchange (FX) market should be considered only when it is necessary to respond to excessive volatility or disorderly movements.
South Korea agreed to share the monthly details of its FX market intervention operations, which are currently made public on a quarterly basis, with the U.S. Treasury on the premise of non-disclosure. ■