- What’s wrong with the foreign exchange market right now LOL.
First of all, Mikook hyung draws too many short-term bonds. He always flexes and lacks money. But when long-term government bonds are issued, interest rates go up, so he only draws a lot of short-term bonds to avoid affecting interest rates. Then the market needs to accept this, so we need a lot of DOLLAR right away. Let’s do that.
“What, are you short of specific dollars right now?”
So the dollar index, which had fallen by nearly 10% in a year, has risen quite a bit. Basically, when the market is in disarray, it is the national rule that everyone buys dollars. Then all the other currency prices will fall. Among them, the won is a newborn, but it has become the largest drop in currency globally this month.
“I thought the dollar only went up, but when I went to Bangkok, the baht was amazing!”
The Korean won and the exchange rate with country A are both determined in dollar terms. In other words, we fight against other countries’ currencies with the price of one-on-one exchange with the dollar.
Barts vs Dollar → Barts less burst
Won vs. Dollar → Won Is Open
Bart vs. KRW → KRW combo, and reality hit
So it’s not that the won is losing ground to the baht, but that the won is losing ground to the dollar, so I got caught up in the baht and lied down.
- Our foreign exchange market is protected by our export brothers. After earning dollars, we went to the Seoul foreign exchange market and said, “Change it to the won. You have to pay the employees.” Then, the Korean won goes up. The trade balance has been in the black for 14 months and the current account balance has been in the black for 29 months. They still make a lot of money. But that’s it. They don’t exchange money often these days.
“Don’t touch our dollar. I’m going to spend it on building a factory in the U.S. next time, so if you touch it, you’ll lose it!”
In fact, our companies have accumulated more than 90 billion dollars in foreign currency deposits. 140 trillion won!! It’s the largest ever. So my kid is good at studying, but his grades are not good. Yes, yes.
In the first nine months of this year, the trade surplus is about 80 billion dollars, and about 20 billion dollars went into direct investment in the United States, and 60 billion dollars went into U.S. stock investment. Yeah, we do. We do it if we do. People of this kind. They scream when they scream. The dollar bill is different, but the dollar that came in and the dollar that went out is almost the same. They don’t exchange the dollars that came in and they’re piling up in their sheds. Only our won, which no one is looking for, keeps getting sad.
- In the meantime, Chang Dragon interviewed Bloomberg and said, “I’ll watch carefully and decide when and how long to cut interest rates. Even the change of direction can be done.” When interest rates go up, government bonds are king. Government bonds are really sensitive. Suddenly, we had a party to sell Korean government bonds. No, that’s not what I meant.
“Hey, it’s splashing!”
On that day, the price of government bonds plunged (I’m holding a 30-year government bond with 27 years left. I couldn’t breathe on the subway on my way home from work), so the government bond rate soared. Two days later, foreign companies sold a net 2.5 trillion won in one day on our stock market.
Why did Chang-Dragon, who said he studied well, make this joke.
“We live in a cave and only eat garlic. Even if it’s hard, you can raise interest rates, so don’t cut the won short. I’m saying this because you’re thinking about it.”
I think it meant something like this. I bluffed to stabilize the foreign exchange market, but the foreign exchange market is very sensitive these days. Those sensitive bosses pressed the Tantrum button. Then why did our foreign exchange market become so sensitive.
This year, we have to issue 110 trillion won in deficit government bonds alone. The deficit of the previous government was a little bit taxed and overspent (Don’t worry, we’re going to shoot that much next year). In particular, we have to send 20 billion dollars each year to Mikook. In fact, this is pretty dope. The smoke from the government bond rate hike is creeping up, and the moment the boss turns on the lighter to smoke a cigarette.
- We have about 420 billion dollars left in foreign exchange reserves.
The stakes are high, but this isn’t enough. I’m done if I start to notice ‘Isn’t he out of money?’ They’re all straightforward. If you look at them with your eyes on them, you’ll get a full bet. “Pretend you don’t have them.” This is important. No matter how much you build up your foreign exchange reserves, you can’t shake them. You remember when Soros broke the yuan in offshore markets, it was bloody hard (Chinese Seung / Soros Grandpa’s loss / Yuan’s foreign exchange reserves gatted in the process)
The Bank of Korea is in charge of the foreign exchange market, but the actual battle is done by the International Finance Bureau of the Ministry of Economy and Finance. Some of my friends are demonstrating the legendary performance of “Pretending You Don’t Have It.” I need them now. For job search, call 044-215-4700
- The foreign exchange crisis?
A long time ago, there was a person named ChoiTler in the Ministry of Economy and Finance. He is from the Ministry of Economy and Finance and even the Minister of Knowledge Economy. When he was the director of the Ministry of Economy and Finance, he pushed for a high exchange rate, so the media called him ChoiTler. Yes. At that time, I wanted to raise the exchange rate crazy. That’s because it’s advantageous for exports. Yes, did your wish work now.
Even if the exchange rate goes up, it goes up too high. So the foreign exchange crisis comes? That’s right. There should be no “foreign exchange = DOLLAR.” What class are you guys in? We have a lot of dollars. We have more than 1 trillion dollars in net foreign investment assets. Koreans are busy buying stocks overseas because they have a lot of dollars, and this is about the time when they sold KEB to Lone Star.
But when the Korean dollar goes overseas, it means investing in foreign countries. That’s right. The real problem is that there are fewer jobs in Korea. This is the real king. When the exchange rate rises, exporters are in advantage, but when import prices rise, their wallets are eventually opened. I’m worried about this. Also, the world is slowly lowering interest rates, but if the exchange rate rises too high, it’s hard for Chang-Dragon to lower interest rates. Money always goes to places that give more interest.
Yes, it’s not that the high exchange rate is bad. The situation going to the high exchange rate is bad right now. It’s not that the number of exchange rates is unstable, it’s the macro surrounding our economy right now