Samsung Korea Research Institute of macroeconomic Research Department in charge of the exchange rate of Kim Yong-shuttle told the reporter, the exchange rate appreciation on Korea export has many negative effects, the Korea economic dependence on the export of relatively large, fare of appreciation on export industry. Samsung Economic Research Institute’s report shows that if the exchange rate rose to KRW dollar 1050 won, Korea 91 main export enterprise revenue will reduce 5.9 trillion won. Won the recent dollar. 8 month won against the US dollar is 1200, has recently fallen to 1120, while other countries have declined, but the data Louis Vuitton is higher than that of other countries, the decline is very large. Kim Yong-Shuttle, the main reason for this is the effect of global exchange rate disputes, particularly in the US exchange rate disputes. In addition, the dollar dropped also affects the level of liquidity supply.
But prof international economic and Trade Department director Wang Yue Sheng believes that the current margin of appreciation of the Korean won and not too high, it is precisely for this reason, the Government of Japan Korea does not like the Government intervene directly. “Won in the financial crisis was once appreciation to 1000 following the devaluation of the subsequent economic crisis to 1800, slowly and appreciation, 1200, 1300, and before the financial crisis, dollar rate than is not very high. But on the other hand, the Chanel Bags appreciation of the yen from 110 to 80. If you also have the same 20% in Japanese yen or 30% of the level of appreciation, Korea Government performance may not be the same. Vincent wrist believes that if won appreciation, for domestic consumption and economic investment is a good thing, but for export, it is bad news. In short, short term won appreciation increased GDP growth slowdown in Korea. “Fare revalue helps limit the inflationary pressures, particularly in commodity prices remain high, thus contributing to reduce the need for monetary tightening.
Official release in the contend. Korea has a flexible system, but there is evidence that the Government or have interference exchange market. Korea Ministry of Finance of the aforementioned officials planning in an interview that Korea take a floating exchange rate system, the exchange rate determined by the market to reflect economic fundamentals and market supply and demand. If the exchange rate does not appear too high or too low, the Government will not intervene. “Korea Government will not intervene in the foreign exchange rate, exchange rate policy in Korea has always been a free adjustment policies, the Government will not be for export to pare, unless there are special circumstances, such as the financial crisis. “The Korea officials said.
He explained that the present case cannot be said to be the financial crisis, but there are two cases where the Government will hand the interference. “If a forex speculation, or the domestic foreign exchange alarmed, government authorities will need to maintain a stable operation of the market. “But he added:” but the Government’s intervention is Replica handbags limited to resist the chaos, the activity of the balance too. Kim Yong shuttle said that Korea’s financial market very open, very free exchange rate policy, the Government does not directly intervene in the foreign exchange market, it is because of this, that won the exchange rate compared with other countries have a greater appreciation of the range.
“As a floating exchange rate of the country, Korea naturally not possible to admit that he interfered in exchange rate, but in fact not true. “Korea certain people in the industry told reporters. 2004 Choi Jung-Kyung step down events make Korea government intervention in the case of foreign exchange. Before October 2004, the Government of Korea to the exchange rate market strong interference to prevent won appreciation, then won dollar remain at 1140 this resistance area. However, in the annual Government checks, Korea National Assembly condemns the Ministry of finance, says its responsible Exchange stabilization Fund was not deliverable forward market Louis Vuitton Bags intervention in the foreign exchange market resulted in huge losses. Choi Jung-Kyung, the Minister responsible for exchange rate intervention by officials also resign. With the end of the exchange rate intervention, from 22 October 2004, won-dollar fell below 1140 mark, and the rapid appreciation of the end of that year to 1035.
Korea’s central Bank, the official foreign reserves since this year, the month of September a new official foreign exchange reserves billion, reaching 2891 million historical high, not including the strategy of the Ministry of finance managers of Korea Exchange balanced fund a part of the official foreign exchange reserves to Korea Investment Corporation of the US dollar. The view was expressed that the foreign exchange reserve growth is likely to be the official foreign exchange market intervention. Nomura Securities that Korea’s Central bank is likely in September, the forward foreign exchange market intervention and intervention rates in the forward contract expires will not appear in official reserves data.
Samsung Korea Research Institute of macroeconomic Research Department