Exchange Rate Calculator

The exchange rate between the South Korean Won (KRW) and the Chinese Yuan (CNY) is a critical indicator of the economic relationship between South Korea and China. Over the past few months, this exchange rate has exhibited notable fluctuations, reflecting various economic factors and market sentiments.

Recent Exchange Rate Trends

Between September 2024 and March 2025, the KRW/CNY exchange rate experienced a range of movements. The highest recorded rate during this period was approximately 0.0053512 CNY per KRW on September 29, 2024. Conversely, the lowest rate was around 0.0049298 CNY per KRW on February 2, 2025. The average exchange rate over these six months stood at 0.0051020 CNY per KRW.

Factors Influencing the Exchange Rate

Several factors have contributed to the observed fluctuations in the KRW/CNY exchange rate:

1. Economic Performance: South Korea and China's economic indicators, such as GDP growth rates, trade balances, and industrial production, significantly impact their respective currencies. For instance, stronger economic performance in South Korea relative to China can bolster the KRW against the CNY, and vice versa.

2. Monetary Policies: Decisions by the Bank of Korea and the People's Bank of China regarding interest rates and monetary policies influence investor confidence and capital flows, thereby affecting the exchange rate.

3. Trade Relations: As major trading partners, any changes in trade policies, tariffs, or bilateral agreements between South Korea and China can lead to adjustments in the exchange rate.

4. Global Market Sentiment: External factors, including geopolitical events, global economic trends, and investor risk appetite, also play a role in currency valuation.

Implications for Businesses and Investors

Understanding the dynamics of the KRW/CNY exchange rate is essential for businesses and investors engaged in activities between South Korea and China. A stronger KRW relative to the CNY can make South Korean exports more expensive in the Chinese market, potentially affecting competitiveness. Conversely, a weaker KRW can enhance export attractiveness but may increase the cost of imported goods and services.

Investors should monitor these exchange rate movements to make informed decisions regarding currency exposure, hedging strategies, and investment allocations in both markets.

Conclusion

The KRW/CNY exchange rate is influenced by a complex interplay of economic indicators, monetary policies, trade relations, and global market sentiments. Staying informed about these factors is crucial for businesses and investors operating in the South Korean and Chinese markets to navigate potential risks and capitalize on opportunities arising from currency fluctuations.