ID :
85685
Thu, 10/22/2009 - 15:58
Auther :
Shortlink :
https://www.oananews.org//node/85685
The shortlink copeid
Gov`t respects market principles on currency moves: finance minister
SEOUL, Oct. 22 (Yonhap) -- South Korea's currency is moving in line with its
economic fundamentals and the government continues to respect that its ups and
downs are determined by market principles, the nation's top economic policymaker
said Thursday.
"The won has been fast appreciating (against the U.S. dollar)," Finance Minister
Yoon Jeung-hyun told lawmakers during a parliamentary audit. "(But) we respect
that the won-dollar exchange rates are determined based both on economic
fundamentals and supply and demand in the market."
His comments were made amid growing concerns that the fast-appreciating local
currency could hurt exports, the backbone of the local economy, as prices of
Korean goods become expensive at overseas markets.
The won has gained about 33 percent versus the dollar since March as foreign
investors snapped up local stocks while local banks and companies have made
efforts to borrow from overseas.
Earlier, the finance ministry dismissed a report by Yonhap News Agency that the
government is mulling tightening regulations on overseas borrowing by local
branches of foreign banks in a bid to stem the local currency's steep climb
against the U.S. dollar.
Yoon's comments also came after Federal Reserve Chairman Ben Bernanke recently
told a conference that the won has recouped only a part of its value after losing
ground sharply in the past, causing some experts to speculate that he was
advocating the further appreciation of the local currency down the road.
Yoon said that Bernanke's remarks "do not seem to be targeted at South Korea,"
adding that he must have tried to emphasize the global consensus over an
international balance trade.
"Global consensus is being formed that countries with current account surpluses
should increase spending to help those with shortfalls, while countries with
current account deficits should increase savings in order to achieve the overall
fiscal and trade balance in the world," the minister said. "Bernanke's remarks
should be understood in this context."
kokobj@yna.co.kr
(END)
economic fundamentals and the government continues to respect that its ups and
downs are determined by market principles, the nation's top economic policymaker
said Thursday.
"The won has been fast appreciating (against the U.S. dollar)," Finance Minister
Yoon Jeung-hyun told lawmakers during a parliamentary audit. "(But) we respect
that the won-dollar exchange rates are determined based both on economic
fundamentals and supply and demand in the market."
His comments were made amid growing concerns that the fast-appreciating local
currency could hurt exports, the backbone of the local economy, as prices of
Korean goods become expensive at overseas markets.
The won has gained about 33 percent versus the dollar since March as foreign
investors snapped up local stocks while local banks and companies have made
efforts to borrow from overseas.
Earlier, the finance ministry dismissed a report by Yonhap News Agency that the
government is mulling tightening regulations on overseas borrowing by local
branches of foreign banks in a bid to stem the local currency's steep climb
against the U.S. dollar.
Yoon's comments also came after Federal Reserve Chairman Ben Bernanke recently
told a conference that the won has recouped only a part of its value after losing
ground sharply in the past, causing some experts to speculate that he was
advocating the further appreciation of the local currency down the road.
Yoon said that Bernanke's remarks "do not seem to be targeted at South Korea,"
adding that he must have tried to emphasize the global consensus over an
international balance trade.
"Global consensus is being formed that countries with current account surpluses
should increase spending to help those with shortfalls, while countries with
current account deficits should increase savings in order to achieve the overall
fiscal and trade balance in the world," the minister said. "Bernanke's remarks
should be understood in this context."
kokobj@yna.co.kr
(END)
