South Korea's central bank says the weakening of the Korean won against the U.S. dollar in 2021 was largely due to the surging prices of raw materials and the South Korean economy's high trade dependence on China.
The won-dollar exchange rate last year rose more than eight percent far more than the rate for the currencies of other major developing countries at 2.7 percent.
The Bank of Korea attributes it to the soaring prices of raw materials, which have hurt South Korea's terms of trade and, in turn, its economy.
Growing concerns about a slowdown in China are also putting pressure on the won.
The BOK says there should be stronger monitoring of the forex market to minimize other external factors like inflation in the U.S.
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