Posted by: rbbadger | October 27, 2008

I sure hope they’re right

We have experienced some volatility with the foreign exchange rate.  When I left Korea at the end of last year, the ratio of Korean won to dollars was about 910.  Now, it is in the 1,400 range.  This morning, the Bank of Korea decided to lower the base interest rate from 5.0% to 4.25%.  It is a quite decisive action and one hopes than in a few months time, the won will once again rise in value.

Goldman Sachs expects that this swift action by the Bank of Korea will help the won make a recovery.  They are predicting that in three months time, it will be back up to 1,250 and continue to rise in value after that.  More importantly, Goldman Sachs also estimates that this swift action, along with further reductions to the base interest rates, will help the Korean economy avoid a recession.

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Responses

  1. What does that do to your savings? I don’t understand economics–I barely squeaked through the college class. 🙂

    What are you doing for Halloween? Do the kids come trick-or-treating there? Hope our house doesn’t get egged or TPd while we’re gone.

    Love, Mama


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