The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    Royal palaces in Seoul offer free access during Chuseok holiday

  • 3

    Korean Baek In-chul wins stunning swimming gold

  • 5

    Koreans adapt to soaring food prices

  • 7

    American soldier who crossed into North Korea arrives back in the US, video appears to show

  • 9

    Korea wins gold in League of Legends competition; Faker tops podium

  • 11

    Blinken to release Chuseok message for S. Koreans for 3rd year

  • 13

    Over 2,200 aging applicants for reunions of separated families died this year: gov't data

  • 15

    Daejeon hosts 14th int'l play festival

  • 17

    Korea claims third consecutive gold in men's team sabre fencing

  • 19

    S. Korea elected as IAEA board member for 2023-25

  • 2

    INTERVIEWRisk-averse culture is forcing daring creators to flee showbiz

  • 4

    Travis King in US custody after expulsion by N. Korea: Washington officials

  • 6

    Education ministry prohibits parents from recording classes

  • 8

    BTS' Jungkook to drop 2nd solo single

  • 10

    Drug offenders using dark web increasing rapidly: report

  • 12

    BOK likely to stand pat again next month on Fed's rate freeze, slowdown

  • 14

    1st gold in Hangzhou leaves N. Korean shooters in tears

  • 16

    N. Korea stipulates nuclear force-building policy in constitution

  • 18

    China launches first cross-sea bullet train line near Taiwan Strait

  • 20

    Kim Woo-min snatches gold in freestyle swimming

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
Sat, September 30, 2023 | 17:57
Editorial
Brexit and currency war
Posted : 2016-06-28 16:56
Updated : 2016-06-28 17:17
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
Ensuring financial stability is top priority

In the aftermath of Britain's vote to leave the European Union last week, fears are mounting that the world might plunge into a currency war.

On Monday, China's central bank cut the yuan's fixed rate by almost 1 percent to 6.6375 to the dollar as the greenback surged after the Brexit vote. Monday's fix was the lowest level since December 2010.

Japan is also ready to act as the yen, one of the haven assets bought in times of turmoil, hit a 32-month high of 99.02 per dollar Friday after the vote. Japanese Prime Minister Shinzo Abe said Japan would carefully watch foreign exchange and stock markets, but his remark was taken as indicating that the world's third-largest economy could intervene in the currency market soon to put the brakes on the surging currency.

The Swiss National Bank already intervened in the currency market in reaction to the United Kingdom's exit from the EU and says it will do more to ease upward pressure on the Swiss franc.

It's also likely that the U.S. Fed will give up its plan to raise its key rate and rather opt to cut the rate in what could be a move to stabilize the global situation. And there is no question that the EU must hold on to its quantitative easing for a considerable time.

Of course, all these competitive depreciation moves by major economies are intended to boost exports by devaluing their currencies. But these must be beggar-thy-neighbor policies that, by pursuing their own interests, would make the economic problems of other countries worse.

What makes Brexit all the more ominous in relation to foreign exchange rates is that current circumstances differ much from those following the 2008 global economic debacle. At the time, countries actively worked together to stabilize stock and currency markets worldwide. This time, however, they seem inclined to go their separate ways to remain alive through competitive currency devaluations amid the strong wind of isolationism around the world.

The fact is that countries have to address their problems on their own. Against this gloomy backdrop, the global economy might get lost and slip into a deeper slump as Brexit has thrown the world into an unprecedented path not trodden over the past decades.

Of course, there is no need to overstate the economic backlash, considering that several years are needed before the U.K.'s "leave" vote becomes a reality. To be sure, now is the time for countries the world over to do their utmost to minimize the adverse impact through international cooperation.

There is no room for complacency though. Korea, in particular, needs to respond to challenges proactively, taking into account that the nation already has been struggling with sluggish exports.

The government should act resolutely to prevent jitters in the financial sector from spilling over into the real economy. What is urgent therefore is to brace for the worst by securing as much foreign currency as possible. This will require the government to expand currency swaps with major economies.

Emailsahds@ktimes.com Article ListMore articles by this reporter
 
miguel
wooribank
LG
Top 10 Stories
1Guide to Chuseok celebrations across Korea Guide to Chuseok celebrations across Korea
2Chuseok exodus begins ahead of extended 6-day holiday Chuseok exodus begins ahead of extended 6-day holiday
3Korea sees record-low births in July Korea sees record-low births in July
4Hyundai E&C to build upmarket apartment complex in Seoul's Gwanak District Hyundai E&C to build upmarket apartment complex in Seoul's Gwanak District
5Political battle intensifies after court rejects Lee's arrest warrant Political battle intensifies after court rejects Lee's arrest warrant
6Korea on track to prove esports prowess at Asian Games Korea on track to prove esports prowess at Asian Games
7[INTERVIEW] Risk-averse culture is forcing daring creators to flee showbiz INTERVIEWRisk-averse culture is forcing daring creators to flee showbiz
8DMZ Open Int'l Music Festival to be held in Goyang in November DMZ Open Int'l Music Festival to be held in Goyang in November
9Lotte focuses on health care, mobility to spur growth Lotte focuses on health care, mobility to spur growth
10Two Koreas trade barbs over nuclear war Two Koreas trade barbs over nuclear war
Top 5 Entertainment News
1Trailblazing nonagenarian artist honored for redefining Korean fiber art Trailblazing nonagenarian artist honored for redefining Korean fiber art
2[INTERVIEW] 'Coexistence of different art hubs across Asia is necessary': Art Week Tokyo Director INTERVIEW'Coexistence of different art hubs across Asia is necessary': Art Week Tokyo Director
3[INTERVIEW] With '30 Days,' Kang Ha-neul finds new level of comfort in acting INTERVIEWWith '30 Days,' Kang Ha-neul finds new level of comfort in acting
4Rwandan artists bring diversity to Seoul's art scene Rwandan artists bring diversity to Seoul's art scene
5[INTERVIEW] ONEUS returns as 'mermaid prince' INTERVIEWONEUS returns as 'mermaid prince'
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group