Bank of Korea (BOK) Governor Rhee Chang-yong predicts that the won-dollar exchange rate may stabilize if tensions in the Middle East do not escalate further. Rhee notes the uncertainties caused by developments in the region, including concerns over the recent depreciation of the Korean won and the potential impact of a wider regional war on oil shipments and other commercial transactions. Rhee emphasizes that the situation in the Middle East affects South Korea's economy, which heavily relies on the region for oil imports. The finance ministers of South Korea, the United States, and Japan have expressed concerns over the depreciation of the South Korean won and Japanese yen. Rhee believes that the shared understanding among the three countries is a meaningful outcome. Rhee also comments on the U.S.' claim about China's overcapacity, stating that the issue can be seen differently depending on one's perspective and can be addressed through negotiations.
The Ministry of Economy and Finance (MOEF) has officially announced the selection of KDB Korea Development Bank, Bank of America (BofA), Citi, Crédit Agricole, and HSBC to manage the issuance of forex stabilization bonds denominated in U.S. dollars. The bonds are expected to be issued within the next two to three weeks. This marks the first U.S. dollar-denominated bond issuance in three years. The government aims to attract high-quality sovereign, supranational, agency (SSA) investors, including foreign governments, central banks, international organizations, and policy finance institutions. The issuance is expected to provide a benchmark interest rate and enable domestic companies and financial institutions to obtain foreign currency at lower interest rates. The government hopes to diversify its capital-raising routes and expand its investor base beyond Asia and asset management firms to include high-quality investors from Europe, the Americas, and the SSA sector. By attracting high-quality investors, the government aims to influence future issuance of forex stabilization bonds at lower interest rates and improve the stability of interest rates in the market. The issuance of forex stabilization bonds can also minimize the crowding out effect and provide domestic institutions with greater opportunities to raise foreign currency funds more easily.
The National Bank of Foreign Economic Activity of Uzbekistan (NBU) has successfully placed international bonds totaling $411mn on the prestigious London Stock Exchange. The bond issuance comprised two tranches: a $300mn tranche with a maturity period of 5 years, and another tranche of UZS 1.4 trillion ($111mn) with a maturity period of 3 years. NBU enlisted the support of leading global institutions as underwriters, including JP Morgan, Citibank, Deutsche Bank, NATIXIS, Societe Generale, Standard Chartered Bank, First Abu Dhabi Bank, and Mashreqbank. The funds raised through this bond issuance are earmarked for fulfilling strategic objectives set forth by Uzbekistan's leadership, including crucial infrastructural projects aimed at enhancing economic growth and improving living standards. NBU's successful placement underscores international investors' confidence in Uzbekistan's ongoing reforms under President Shavkat Mirziyoyev. The bank's pioneering effort in issuing international bonds in Uzbek soums sets a precedent for other commercial entities within the country. The London Stock Exchange remains a cornerstone of global finance, providing a platform for companies worldwide to raise capital and expand their operations.
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