ID :
208943
Fri, 09/23/2011 - 04:21
Auther :
Shortlink :
https://oananews.org//node/208943
The shortlink copeid
Seoul to step up multilateral cooperation against credit crunch: Bahk
WASHINGTON, Sept. 22 (Yonhap) -- South Korean Finance Minister Bahk Jae-wan said Thursday that his government will focus on improving a global financial safety net, rather than seeking bilateral currency swaps with the United States, as a way to alleviate worries over a possible dollar shortage.
He said the South Korean economy, heavily dependent on exports and wide open to foreign capital markets, is vulnerable to external volatility.Its currency, the won, has declined more than 10 percent against the U.S. dollar since Aug. 1 amid global market jitters.
The minister made clear that Seoul has no plans to request another round of currency swap lines with Washington. In late 2008, when international investors were worried about a liquidity crunch in South Korea, the Bank of Korea signed a US$30-billion temporary currency swap deal with the Federal Reserve.
"Things (now) are different from then," Bahk said in a meeting with South Korean correspondents here. "We are not in such a serious condition to consider the measure (of currency swaps)." He is on a visit here to attend the annual meetings of th International Monetary Fund and the World Bank.
He cited a number of better conditions, including a current account surplus, lower unemployment rates, and increased foreign exchange reserves.
Bahk's comments came shortly before an one-on-one meeting with U.S. Treasury Secretary Timothy Geithner.
The minister said South Korea will step up efforts to bolster the function of the IMF as a global financial safety net and implement the Chiang Mai initiative, already in place, to arrange currency swaps regionally.
He added that the South Korean government will continue to take steps to tackle excessive swings in foreign exchange rates.
The size of South Korea's foreign exchange market is too small in comparison with its general economic size and the country's financial markets are wide open, he pointed out.
lcd@yna.co.kr
leechidong@gmail.com
(END)
He said the South Korean economy, heavily dependent on exports and wide open to foreign capital markets, is vulnerable to external volatility.Its currency, the won, has declined more than 10 percent against the U.S. dollar since Aug. 1 amid global market jitters.
The minister made clear that Seoul has no plans to request another round of currency swap lines with Washington. In late 2008, when international investors were worried about a liquidity crunch in South Korea, the Bank of Korea signed a US$30-billion temporary currency swap deal with the Federal Reserve.
"Things (now) are different from then," Bahk said in a meeting with South Korean correspondents here. "We are not in such a serious condition to consider the measure (of currency swaps)." He is on a visit here to attend the annual meetings of th International Monetary Fund and the World Bank.
He cited a number of better conditions, including a current account surplus, lower unemployment rates, and increased foreign exchange reserves.
Bahk's comments came shortly before an one-on-one meeting with U.S. Treasury Secretary Timothy Geithner.
The minister said South Korea will step up efforts to bolster the function of the IMF as a global financial safety net and implement the Chiang Mai initiative, already in place, to arrange currency swaps regionally.
He added that the South Korean government will continue to take steps to tackle excessive swings in foreign exchange rates.
The size of South Korea's foreign exchange market is too small in comparison with its general economic size and the country's financial markets are wide open, he pointed out.
lcd@yna.co.kr
leechidong@gmail.com
(END)
