US debt crisis causes panic in South Korea

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The consequences of the current US debt crisis could be felt as far afield as South Korea, according to reports from global analysts.

Fears appear to have been allayed that the US will now default on their debt thank to the passing of an eleventh hour bill. However, major global powers around the world will be watching the situation carefully in the hope that everything runs smoothly from this point.

The South Korean economy relies heavily on US exports and any volatility to the global market could yet have real consequences for that particular relationship.

An official from the Bank of Korea, South Korea’s central bank, stated “What is most concerning is that the U.S’ failure to failure to raise its debt ceiling will intensify the overall volatility in the foreign currency markets.

Higher financial market volatility could exacerbate major economic indicators here at a marked pace.”

The currency value is obviously a major factor in determining the country’s economic growth, so any significant hits in that area will definitely be felt by South Korea.

Thankfully, it appears as though the default will not be an issue now. This will be a great relief to a number of the biggest (and some not so big) economies around the world.

Such is the size of the US economy that its tentacles spread to all corners of the globe. Many countries will today be heaving a sigh of relief, while also keeping a close eye on future developments.

Transfer Money to South Korea

If you are looking to invest in South Korea, think carefully about how you will be transferring money to South Korea. Foreign currency exchange rates quoted by banks are almost always worse than the exchange rates available through specialist currency dealers.

So if you are sending money to South Korea – which you will inevitably have to do if you are looking to make a property investment, be sure to compare the market before you buy your overseas currency.

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US debt crisis causes panic in South Korea

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