Sager wrote on April 18th, 2014,:
IMF CALLS FOR AN INCREASE IN THE EXCHANGE RATE OF CURRENCY IN SOUTH KOREA
Frank26: Big Deal ........... Sager and Frank26 call for the immediate increase in the exchange rate of the Iraqi Dinar .............. BOZOS!!!
Some called me last week and asked what I thought about the Zimbabwe currency.
I laughed then said:Two years ago I introduced 3 other currencies to only sell besides the IQD and DONG ....... They were CHINA ..... RUPIAH and SOUTH KOREAN WON.
Then the internet ............ Copied my move. Many asked me back then ........ Why?
Answer ............. For a very good reason..........
Aloha Friday KTFA Family ........... Frank
walkingstick » April 18th, 2014
Updated: Friday April 18, 2014 MYT 12:07:21 PM
IMF adds pressure on S. Korea to let won rise
The yuan and now the won have been criticised by the West as being undervalued, but the so far not a word has been uttered against the cheap yen - Reuters Photo.
SEOUL: South Korea came under fresh pressure on Friday to let the won rise faster, when the International Monetary Fund said it was carrying an abnormally big current account surplus and that more dollar purchases would do more harm than good.
The IMF said in a report based on its late 2013 annual policy review that the won was estimated to be as much as 8 percent undervalued, while saying South Korea appeared to have been intervening actively to resist the currency's appreciation.
The US Treasury Department also called on South Korea in a scheduled report early this week to limit foreign exchange intervention to exceptional circumstances and not use regulatory measures to curb appreciation pressures.
"Staff, therefore, continue to assess that the exchange rate remains moderately undervalued in the range of 2%-8%, with the upper end of the range seeming more plausible in light of the recent widening of the current account surplus," the IMF said said.
The won has gained 1.8% against the dollar so far this year and was trading close to a near six-year high set last week.
The IMF said South Korea's current account surplus was estimated to be around 3% to 4% more than the norm. South Korea's current account surplus shot up to 6.1% of annual gross domestic product in 2013 from 4.2% in 2012.
"Over the medium term, greater exchange rate appreciation would encourage reallocation of resources to the non-tradable sector, thereby further supporting rebalancing," the IMF said, adding further dollar-buying intervention is also costly.
South Korea's economy, the fourth-largest in Asia, relies heavily on exports for growth, and the country has repeatedly denied it was intervening in the currency market with the aim of keeping the won cheaper than the fair value.
"(South Korean authorities) disagreed with staff's assessment that the won is moderately undervalued, noting its appreciation since 2012," the IMF also said in the report. "They stressed that smoothing operations are restricted to alleviating excessive exchange rate volatility in the face of market herding."
The report was published based on the IMF's annual policy consultations with South Korea held in late 2013 and on a staff report prepared early this year, it said.
It added inflation in South Korea was expected to return to the country's target, which is set by the central bank at between 2.5% and 3.5%.
Inflation has stayed below the lower end of the target for months. – Reuters
Frank26: KTFA Family ........... IYO ............ Who has the greatest potential at economic growth and a base of security not only in their nation but in their ......... CURRENCY?
Iraq or Korea?
IYO ........ If Korea is being told to do so by the IMF ......... Who else do You believe this Bell Tolls for?!
You have witnessed the IMF WORKING with the CBI feverishly to raise the value of the IQD but when have You seen the IMF work with Korea to improve the Won?
Is IQD's MR so done that IMF now points the same finger at Korea?