# Currency volatility to widen due to gov't plan to offset tax shortfall with FX stabilization funds - The Korea Times

> Market watchers expect the won to fluctuate sharply after the government plans to draw up to 6 trillion won ($4.5 billion) from the foreign exchange stabilization fund to offset a 30 trillion won tax shortfall this year. Critics argue the fund should be reserved for extreme volatility, not fiscal needs.

- Date: 2024-10-29 · published 2024-10-29T12:00:00.000Z
- Category: macro · region South Korea · magnitude low
- Page: https://feedsoft.ai/events/28102-currency-volatility-to-widen-due-to-gov-t-plan-to-offset-tax-shortfall-with-fx
- Commodities: [Korean Won (KRW per USD)](https://feedsoft.ai/c/USDKRW.md)

## Why it matters

Drawing down currency buffers signals reduced capacity to defend the won, which can keep Korean import costs for feed ingredients volatile and elevated.

## Read by commodity

- USDKRW: bullish ▲

## Sources

- koreatimes.co.kr: https://www.koreatimes.co.kr/economy/20241029/currency-volatility-to-widen-due-to-govt-plan-to-offset-tax-shortfall-with-fx-stabilization-funds

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.