Warning against Speculation

 

LIG Investment & Securities said on Feb. 11 that Korea could become a target of foreign exchange speculators if it is slow to defend the value of its currency. 

According to a recent report, Korea is one of the countries recording the highest level of current account surplus-to-GDP ratio. The other countries in the group are already taking measures to protect themselves from speculators. 

For examples, Denmark cut its deposit rate no less than four times in three weeks, and Singapore adjusted the slope of its exchange rate band while Switzerland removed the upper limit on its currency. 

“In the group, Korea, Taiwan, Norway, and Sweden are exposed to speculation attempts,” research analyst Kim Yoo-kyum explained, adding, “The Korean financial authorities need to show a committment to tackle speculation.”

Copyright © BusinessKorea. Prohibited from unauthorized reproduction and redistribution