The Korean Government temporarily concluded that the foreign crisis, which shocked Korea’s economy over the last 3 months, was over.
Although the object-economy slump following the international finance crisis is threatening to be aggravated home and abroad, the liquidity crisis from dollar shortage was gone and there is no fear of recurrence without any terrible accident such as the failure of Lehman Brothers.
On the 22nd, an official of the Ministry of Strategy and Finance said, “At least, the liquidity problem of foreign currency was over. With various indexes and an analysis on market status home and abroad, the crisis was gone and there is no fear of its recurrence even until next year.”
The foreign exchange market and the foreign capital market, which ran short of dollars only one month ago, are not responsible to get dollars any more, and the liquidity problem of dollars is not serious right now.
The government and the Bank of Korea will provide 24 billion dollars and 10 billion dollars, respectively, and almost 30 billion dollars are introduced on the market up to recently.
As a result, the exchange rate of won & dollar abruptly declined. On Nov. 21, the rate dropped by 15.4% with a sharp decline in one month after rising up to 1,525.00 won.
Furthermore, since commercial banks are recently promoting to borrow foreign currency by building partnerships with overseas banks and dominating the credit line, the future of foreign capital market is bright.
The view on Korea from foreign investors is also changing positively.
As reported in the recent record, Morgan Stanley wrote that the difficulty in foreign loan rollover of bank note made it still uncertain, but it was clear that the imbalance of international payments would be improved.
In addition, it prospected that a large-scale redemption for foreign bonds was not expected since Korea positively took action on the foreign loan rollover, which brought about the instability of international payments.
By Jung Eunsun
정은선 기자 stop1020@ajnews.co.kr
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