Bank of Korea(BOK) Governor Rhee Chang-yong says he believes that the won-dollar foreign exchange rate will stabilize in the event of the Iran-Israel conflict not expanding into a full-blown war. 

Rhee made the remark on Friday in Washington where he is attending the spring meetings of the International Monetary Fund. 

The governor told reporters that the won-dollar rate began to stabilize after the finance chiefs of South Korea, the U.S. and Japan had acknowledged serious concerns over the recent sharp depreciation of the won and the yen against the U.S. dollar during a meeting on Wednesday in Washington.

Rhee also cited that following news that further attacks by Israel on Iran could be limited, the won-dollar rate is again showing signs of stability. 

Rhee said if the latest conflict does not develop into a full-blown war, global oil prices will no longer go up and that it is likely the Strait of Hormuz won't be blocked, thus stabilizing the won-dollar rate again. 

The governor then stressed that Wednesday’s meeting of the finance chiefs was extremely significant in that a consensus was formed on the recent depreciation of the won and the yen against the dollar.