Key Currency Data Recovers
The spread for foreign exchange stabilization funds has grown recently. The rate was 1.65 percent on Friday, a jump of 0.25 percent in only three days.The foreign exchange stabilization funds had been maintaining a spread of 2.04 percent until late last year, which was considered reasonable considering Korea's credit ratings of BBB. However, expectations of a quick recovery of the Korean economy and the buying streak of domestic insurance firms brought the spread down to 1.29 percent at the beginning of June.
"The recent rise looks like a recovery of the spread to its normal level," a finance sector insider said. "Considering that the spread for countries with a BBB rating is normally in the 2 percent range, additional rises shouldn't be too large."
with the Korea JoongAng Daily
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