SWF Radar

The Chosun Ilbo reports that, “The [South Korean] government's foreign exchange stabilization fund, which is used to defend the won from volatile fluctuations against the U.S. dollar, has accrued losses of W26 trillion (US$1=W1,269). The reason was massive losses from investing in derivatives products in the attempt to defend the won, compounded by foreign exchange losses due to fluctuation. The forex stabilization fund draws its resources by issuing stabilization bonds, so losses incurred must be filled using taxpayers' money.”