After the won vs. dollar exchange rate reached a new 13-year high, inflation in the country, which imports about 94% of its energy and natural resources, skyrocketed, making it necessary to revise South Korea’s contingency plans due to the strong volatility of the national currency; Business Insider wrote.

So far, the country’s officials have limited themselves to verbal intervention: the authorities said they are watching the rapid growth of the korean won volatility and are ready to take measures to combat excessive volatility in the currency market, according to Finance Minister Chu Ken Ho.

Another reminder of the need for intervention was made in late August by Bank of Korea Governor Ri Chan-yong: he said there is a “high probability of increased korean won volatility” in the currency market whenever the US Federal Reserve makes its monetary policy decisions.

Recall that the dollar rose Thursday to a high not seen since March 2009 against the won, or 0.6 percent to 1,399 won. For the year, the dollar is up about 18% against the won.

In 2022, South Korea posted its first annual trade deficit since 2008, as export growth slowed and the cost of imports rose. This year, the country’s inflation rate reached its highest in more than 2 decades, and in August it was 5.7%.

Earlier, we reported that the yuan is depreciating ahead of key central bank meetings.