Financial Communique » currency

South Korea with high level of gold-currency reserves

Viliyana Filipova — Mon, 04 Apr 2011 09:59:10 +0000

The Gold-currency reserves of South Korea rose to new record levels in March, surpassing its dollar equivalent of the previous two months. The main buffer in the country against possible financial turmoil lasting approaching $ 300 billion. In March, the dollar value of official gold-currency reserves amounted to 298.62 billion dollars. This is 950 million dollars more than the previous record of 297.67 billion set in February. South Korea’s reserves fell to just over $ 200 billion in November 2008 when the central bank is using some of them to combat the shortage of liquidity when credit dried up during the global financial crisis. Since then, however, foreign exchange reserves of South Korea are rising steadily. Foreign exchange reserves are a key instrument of economic and monetary policy to protect the currency from speculative attacks, while can be used to provide liquidity and strengthening the financial system. The central bank of South Korea indicate that the appreciation of the euro and other currencies in their reserve currency causes an increase in dollar equivalent of the reserves. The South Korean government sees its reserves a key tool for protection against financial instability. The Asian country is particularly sensitive after the Asian financial crisis of 1997-98, when received to be considered as degrading of the public international rescue.
The Gold-currency reserves of South Korea are largely invested in securities and deposits, according to central bank. A smaller percentage of them are placed in special drawing rights – special currency which is under the supervision of the International Monetary Fund (IMF). Gold has the smallest share. Asian countries are world leaders in the gold-currency reserves. South Korea’s reserves are the seventh largest in the world after those of China, Japan, Russia, Taiwan, Brazil and India in late February, according to central bank does not specify whether this list has changed in March. Seven of the top ten countries with the largest reserves in February were in Asia. China and Japan have the largest reserves in the world. China, which publishes data quarterly, has reserves 2.8 trillion. dollars at the end of 2010, international reserves of Japan amounted to 1.09 trillion. dollars at the end of February, according to the Ministry of Finance in Tokyo.
The other Asian economies among the first in the top ten reserves are Hong Kong and Singapore, according to central bank of South Korea.

The price of crude oil stabilized around $ 77 a barrel

Viliyana Filipova — Tue, 01 Dec 2009 07:04:57 +0000

The quotes of the Asian oil trading today remained just below $ 77 a barrel and stopped fall, which at the end of last week saw prices of raw materials, but the stock players after very careful how I move the other two markets – equity and currency. Especially careful they will be in today when the market actually works in the U.S. after official Thanksgiving holiday shopping craze and “Black Friday.” Then I will make clear how the threat reverberated from Dubai, said Reuters. The agency reminds that at the end of last week provoked emirate markets, announced unavailability of the government investment fund Dubai World and its subsidiary development company Nakheel to pay its obligations. According to Bloomberg agency stabilization of oil prices is mainly due to the promise of the other 6 Emirates to help and first decision of the Central Bank of the United Arab Emirates to financially support local businesses if the crisis in the Dubai World overtake them. U.S. light crude oil increased marginally by 0.14 percent to 76.16 a barrel. On Friday last week with quotes for oil delivery in January fell by 2.5 percent and stopped to $ 76.05 a barrel. Bloomberg calculations show that oil notes monthly decline 1.3 percent in November compared to October.
At the opening of trading in London oil variety “Brent with delivery in January decreased slightly, but then rose 17 cents a barrel on Friday compared the quotations and is available now for $ 77.35 a barrel. Another carefully observed account of the market once the dollar’s decline against the euro to $ 1.5048 per euro. Agency Reuters points out that only last full week of November the U.S. currency has lost nearly 1 percent against the euro.

Lithuania will not hurry for the Eurozone

Viliyana Filipova — Mon, 30 Nov 2009 07:58:08 +0000

Lithuania will not adhere to the “painful” scheme for adopting the euro, which will shrink consumption and greatly harm the economy, said Prime Minister of the country Cubilus Andrews. The country probably will fail to meet EU requirements for the deficit within 3 percent of GDP by 2011, so the adoption of the euro can not happen before 2013, said in an interview yesterday, Finance Minister of Lithuania Ingrid Simon. “These are very ambitious and very painful measures, and, of course, there are any limits on what measures can enter,” said Cubilus. The aim is not to kill the entire economy and stability in society by reducing costs, salaries and pensions. Lithuania’s economy contracted by 14,3 per cent in the third quarter after the government took budget cuts, equivalent to 8 percent of GDP this year. Even after these stringent measures, the evaluation of the European Commission Lithuania will have a deficit of 9,7 per cent in 2011 to 9.8 per cent for this. Lithuania, whose currency – liras is tied to the euro should be introduced European single currency “as soon as possible, but the opportunities in turn have practical limits and practical measures should be introduced,” said Cubilus. The government has proposed the 2010 budget cuts of 5 percent of GDP, aimed at social welfare. Lithuania lags behind neighboring Estonia, which plans to join the eurozone from January 1, 2011, after years of using the government budget surplus for the establishment of reserves. This allowed the public finances remain intact even after the crisis hit the country.
The other Baltic states – Latvia, does not think that will be able to introduce the euro before 2014