Friday, March 27, 2009

Exchange Rate - The won is winning

The won has been fast gaining ground on the dollar lately, which is good news for English teachers in Korea trying to send money home or pay off student debt. Since reaching a recent peak of 1583 won/dollar at the beginning of March, it has been falling faster than maize bags dropped from an aid plane.

The won's gain has been only aided by the dollar's loss. Calls by Russia and China, and now the UN, for a global currency to replace the dollar as the world standard, have brought the future value of the dollar into question. US Treasury Sec Geithner's comment about the US being "open" to the idea surely didn't help matters. 

As the US stimulus package starts to pump new money into the economy things should only get better for the won, and other currencies, against the dollar.

1 comment :

  1. Anonymous11:45 AM

    America will need a new currency before Geithner and the politicians are finished expanding the debt and destroying the dollar but the solution is a gold backed currency free of government manipulation. The Campaign to Cancel the Washington National Debt by 12/21/2012 through constitutional amendment begins. See our facebook page at http://www.facebook.com/group.php?gid=67594690498&ref=ts

    We are also planning to have a booth at FreedomFest 2009, the world's largest gathering of free minds! July 9–11 www.freedomfest.com in Las Vegas. Ron

    ReplyDelete

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