✅ Actually, the method to stabilize the exchange rate is simple. Raising interest rates stabilizes the exchange rate. The problem is that simply raising rates isn’t easy, because there are serious downsides to doing so. However, raising interest rates is still the most straightforward and certain way to stabilize the exchange rate. Right now, the dollar, euro, yen, baht, and others— from the U.S., Japan, Europe, Thailand, and more— have all shifted in favor of the Korean won. Want to stabilize the exchange rate? Just match U.S. interest rates— it will work 100%. The issue? It may lead to a painful situation. The economy will likely suffer, but since the semiconductor sector is currently extremely competitive, now might be a relatively less painful timing to raise rates.