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WASHINGTON (Yonhap News) -- The head of South Korea’s central bank sought Wednesday to ease worries over his country’s financial markets, saying they won’t likely face another sudden crisis.
The current situation is “different from when (the South Korean economy) was in difficulty in 2008,” Bank of Korea Gov. Kim Choong-soo said in a meeting with South Korean correspondents in Washington.
He is on a visit here to attend the World Bank/International Monetary Fund Annual Meetings.
Kim pointed out constant capital inflow into South Korea’s bond markets, playing down worries about capital flight on global jitters.
“Chances are very low that financial institutions themselves will go to a crisis all of a sudden,” he said.
On the slide of the Korean currency, won, Kim said the trend is unlikely to continue for long.
The won closed at 1,149.9 per dollar on Wednesday, up 1.5 won from the previous day. It is a 9.6-percent jump from 1,048.9 recorded on Aug. 1.
“It is hard to precisely predict the future but I don’t think this (rapid hike) will continue,” he said.
Kim remained guarded about raising key interest rates this year.
Concerns about the global economy have grown. The IMF said earlier this week that South Korea’s economy is growing slower than expected this year.
It cut this year‘s growth outlook for South Korea to 4 percent from 4.5 percent.
South Korea’s economy is heavily dependent on exports. The IMF said the U.S. economy is projected to grow just 1.5 percent in 2011, down from its earlier estimate of 2.5 percent.
The IMF said the global economy has entered a “dangerous new phase.”
The current situation is “different from when (the South Korean economy) was in difficulty in 2008,” Bank of Korea Gov. Kim Choong-soo said in a meeting with South Korean correspondents in Washington.
He is on a visit here to attend the World Bank/International Monetary Fund Annual Meetings.
Kim pointed out constant capital inflow into South Korea’s bond markets, playing down worries about capital flight on global jitters.
“Chances are very low that financial institutions themselves will go to a crisis all of a sudden,” he said.
On the slide of the Korean currency, won, Kim said the trend is unlikely to continue for long.
The won closed at 1,149.9 per dollar on Wednesday, up 1.5 won from the previous day. It is a 9.6-percent jump from 1,048.9 recorded on Aug. 1.
“It is hard to precisely predict the future but I don’t think this (rapid hike) will continue,” he said.
Kim remained guarded about raising key interest rates this year.
Concerns about the global economy have grown. The IMF said earlier this week that South Korea’s economy is growing slower than expected this year.
It cut this year‘s growth outlook for South Korea to 4 percent from 4.5 percent.
South Korea’s economy is heavily dependent on exports. The IMF said the U.S. economy is projected to grow just 1.5 percent in 2011, down from its earlier estimate of 2.5 percent.
The IMF said the global economy has entered a “dangerous new phase.”
