SEOUL, Oct 18 (Reuters) - South Korea’s finance ministry official in charge of currency markets said on Wednesday Washington’s decision to put South Korea’s currency practices on monitoring list was as expected.
Kim Yoon-kyung, director general at the ministry’s International Finance Bureau, said the South Korea’s trade surplus from trading with the U.S. was shrinking, a fact that helped Seoul avoid the “currency manipulator” label.
He said South Korea’s intervention in currency markets was limited. “Currency markets should be market-oriented, and we conduct smoothing operations only in cases of sharp volatility,” Kim told Reuters by phone.
The semi-annual U.S. Treasury currency report kept China, South Korea, Japan and Germany on its monitoring list. (Reporting by Cynthia Kim; Editing by Eric Meijer)