Arab Today, arab today bok chiefs korean economy faces greater downside risks
Last Updated : GMT 17:27:59
Arab Today, arab today
Arab Today, arab today

BOK chief : S. Korean economy faces greater downside risks

Arab Today, arab today

Arab Today, arab today BOK chief : S. Korean economy faces greater downside risks

Seoul - Yonhap

Downside risks to South Korea\'s economic growth have escalated due to sputtering recoveries in advanced economies and contagion fears about the eurozone debt crisis, the top central banker warned Tuesday. Bank of Korea (BOK) Gov. Kim Choong-soo told lawmakers that domestic economic activities are moderating while the overall economy is on an upward trend. \"In terms of upside and downside risks, downward risks are viewed as being predominant on concerns about the sluggish growth of advanced countries and the spread of the eurozone sovereign debt problems,\" the governor told lawmakers. \"Economic uncertainty remained high as major advanced economies\' room for fiscal policies was reduced and political leadership to solve (the eurozone debt crisis) remains weak. The local economy is expected to be on a long-term growth trend, but downside risks to growth increased due to external factors,\" Kim said. The BOK said earlier that if global financial jitters and economic slowdowns in advanced countries persist, the growth of the Korean economy will likely be affected by a considerable margin, raising speculation that the central bank may cut its growth estimate of 4.3 percent for this year. The governor, however, said that current eurozone debt problems are unlikely to cause a financial crisis similar to that experienced worldwide in 2008. Heightened external economic uncertainty is causing more analysts to bet that the BOK is likely to freeze the key rate at 3.25 percent for the remainder of this year. The BOK said consumer prices are likely to be on the rise due to oil prices and economic growth, but the pace is expected to ease on a fall in prices of agricultural products. \"Consumer inflation is maintaining its upward trend, but the growth pace of consumer prices is expected to slow gradually,\" Kim said. South Korea\'s consumer prices jumped a whopping 5.3 percent in August from a year earlier, surpassing the upper ceiling of the BOK\'s inflation target range for the eighth straight month. According to the central bank, price gains mainly stemmed from the supply side, like hikes in oil and food prices in the January-August period. The bank said it will manage the monetary policy by focusing on price stability while taking into account risk factors at home and abroad. It added that it will collect the remaining 900 billion won out of its 2.1 trillion won investment in a fund aimed at stabilizing the bond markets. The fund was set up at the height of the global financial turmoil to help ease a credit crunch. Speaking of the country\'s foreign reserves, Kim said South Korea can deal with global financial market uneasiness with its current level of US$312.19 billion in FX reserves. Market players estimated that foreign exchange authorities intervened to curb a sharp drop on the won, raising speculation that Korea\'s foreign reserves may be insufficient to cope with an unexpected foreign liquidity shortage. \"It is not appropriate to view the current level of more than $300 billion in foreign reserves as small,\" Kim said. \"It is hard to say whether the reserve is adequate, but we can cope with market troubles with the current volume of the reserves.\" The BOK said in a report that it plans to increase its proportion of non-dollar assets \"gradually\" while keeping the current portfolio of its foreign exchange reserves given the prospects that the U.S. dollar will maintain its status as the reserve currency for a considerable period of time. The BOK has been making efforts to diversify its FX reserves by curtailing the weight of U.S. dollar-denominated assets. The proportion of the BOK\'s dollar holdings fell for the second straight year in 2009, but rebounded last year due to increased external uncertainty like the eurozone debt crisis. The BOK\'s dollar holdings came to 63.7 percent of its foreign currency assets as of end-2010, up 0.6 percent from a year earlier.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today bok chiefs korean economy faces greater downside risks Arab Today, arab today bok chiefs korean economy faces greater downside risks

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today 17.4 million tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4 million tourists visit UAE in 2016
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Reasons for the delay 'On the Stairs of Servants'

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday