ID :
209886
Wed, 09/28/2011 - 09:29
Auther :
Shortlink :
https://oananews.org//node/209886
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S. Korean currency market stable: financial regulator (UPDATE)
SEOUL, Sept. 28 (Yonhap) -- South Korea's top financial regulator said Wednesday South Korea's foreign currency market is faring well despite the ongoing global economic uncertainties that are likely to linger for the time being.
"It is not yet time to worry. ... There have been efforts to increase mid- and long-term borrowing over the last few months and the stress test results prove there is enough strength to sustain (the current conditions)," Financial Services Commission Chairman Kim Seok-dong told reporters after a conference.
In a separate briefing, the FSC said South Korea's portion of short-term foreign borrowing almost halved from 50.1 percent at the end of 2008 to 27.8 percent as of end-July. The regulator also said the country's excess foreign capital, which can be liquefied any time, increased around four-fold in September from June, without disclosing the amount.
Kim, however, said global economic uncertainties are likely to last for the time being due to a continued slump in the real economy.
"The current global economic and financial markets crises lie on the extension of the 2008 global financial crisis ... Due to a slump in the real economy, global economic uncertainties are likely to persist for quite a long time," he said.
Kim said coordinated policy efforts are highly unlikely as countries are going through different economic situations.
Room for policy efforts is quite limited since countries have already beefed up expansion policies in the aftermath of the 2008 global financial crisis, he said.
The top regulator also said it seems difficult for the U.S., sagging with its twin debts, and quake-stricken Japan to restore their economic mettle.
Meanwhile, Kim said expanding the local capital market may be one way to reduce South Korea's excessive market volatility.
South Korea is pushing to nurture homegrown investment banks and adopt an alternative trading system, with a goal of introducing a local hedge fund by the end of the year.
"It is not yet time to worry. ... There have been efforts to increase mid- and long-term borrowing over the last few months and the stress test results prove there is enough strength to sustain (the current conditions)," Financial Services Commission Chairman Kim Seok-dong told reporters after a conference.
In a separate briefing, the FSC said South Korea's portion of short-term foreign borrowing almost halved from 50.1 percent at the end of 2008 to 27.8 percent as of end-July. The regulator also said the country's excess foreign capital, which can be liquefied any time, increased around four-fold in September from June, without disclosing the amount.
Kim, however, said global economic uncertainties are likely to last for the time being due to a continued slump in the real economy.
"The current global economic and financial markets crises lie on the extension of the 2008 global financial crisis ... Due to a slump in the real economy, global economic uncertainties are likely to persist for quite a long time," he said.
Kim said coordinated policy efforts are highly unlikely as countries are going through different economic situations.
Room for policy efforts is quite limited since countries have already beefed up expansion policies in the aftermath of the 2008 global financial crisis, he said.
The top regulator also said it seems difficult for the U.S., sagging with its twin debts, and quake-stricken Japan to restore their economic mettle.
Meanwhile, Kim said expanding the local capital market may be one way to reduce South Korea's excessive market volatility.
South Korea is pushing to nurture homegrown investment banks and adopt an alternative trading system, with a goal of introducing a local hedge fund by the end of the year.
