Posted by: rbbadger | October 28, 2008

Foreign exchange woes

One of the reasons for the poor performance of the Korean won has been the decision of the Ministry of Strategy and Finance to take measures to lower the value of the won earlier this year.  It was a profoundly stupid time to do it, what with the looming financial crisis in America and the fact that the Korean economy is linked to the American one in many ways. 

During the last years of Roh Moo-hyun’s presidency, officials of the Korean government were concerned what to do about the rising won which was making Korean exports more expensive.  Apparently, President Lee’s administration shared the same concern.

Now, the natives are restless, as it were, and many are calling for the head of the Minister of Finance and Strategy, Kang Man-soo.  Government ministers in the Republic of Korea often have very short times in power.  Korean politics, while most certainly having come a long, long ways, is extremely volatile and compromise is not in the vocabularies of many members of the National Assembly.  In some ways, I wish that Korea had not done away with an upper house.  If anything, a two-tiered legislature can sometimes put a stop to the foolishness of the other house.

Thankfully, I had managed to convert a sizeable portion of my savings into US Dollars.  But it still isn’t where I’d like it to be.

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