CURRENCY SWAPS 2008-2009-2010 LINKS ~ Snip ~ "President Lee said that recent currency-swap arrangements with Japan and China have improved confidence in the Korean economy. Those agreements give Korea access to yen and yuan funds, as well as some dollar funding.
and ... Snip ~ "In 2008, we had currency-swap agreements with the U.S., China and Japan. This time we recently had deals with Japan and China. I think we can discuss this matter with the Fed in the future," he said"
October 28, 2011
Priorities of South Korea's Lee: Inflation, Jobs and his focus is now on improving economic conditions for average Koreans ...
SEOUL—South Korean President Lee Myung-bak said his economic priorities as he enters his final year in office are taming stubbornly high inflation and creating jobs.
President Lee said Korea's diversified export markets and improved corporate competitiveness have helped the economy weather recent global economic instability. He said his focus is now on improving economic conditions for average Koreans.
"Domestically, for now, price stability and job creation is top priority for me," he said.
Inflation has remained above the central bank's target zone throughout 2011, although easing food and commodity prices are expected to bring down the consumer-price index in coming months.
Continues ...
Mr. Lee said the government isn't considering further measures to damp sharp swings in fund flows that have caused volatility in Korean markets in recent months. Seoul has taken a series of measures, including a levy on banks' offshore debt, to limit the impact of so-called hot money.
"Financial markets are now stable. Our foreign-exchange reserves are ample and capital at banks is good," Mr. Lee said.
Regarding the deal forged this week to the euro zone's debt problems, Mr. Lee said he was pleased that a framework solution had been reached but "the task ahead is to come up with a specific action plan."
The president said that recent currency-swap arrangements with Japan and China have improved confidence in the Korean economy. Those agreements give Korea access to yen and yuan funds, as well as some dollar funding.
Mr. Lee said there was no need now to talk to the U.S. Federal Reserve about reopening a currency-swap line that was set up during the 2008 financial crisis.
"In 2008, we had currency-swap agreements with the U.S., China and Japan. This time we recently had deals with Japan and China. I think we can discuss this matter with the Fed in the future," he said.
After agreeing to a free-trade deal with the U.S. recently, Mr. Lee said feasibility studies have been conducted on similar pacts with China and Japan and preparatory work for negotiations are under way. But he added that such deals aren't likely in the near future.
The U.S. free-trade deal is scheduled to come into effect on Jan. 1, but has yet to ratified by the Korean parliament.
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