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Korea is expected to shift back to a current account surplus of between US$500 million to $1 billion in October after posting deficits throughout the year. Recently, foreign investors and other outside observers have been questioning Korea¡¯s foreign currency reserve capacity, pointing to the country¡¯s current account deficit. But as a result of the swing, external credibility is expected to get a boost.
A Bank of Korea official said the country's current account is likely to log a surplus between $500 million and $1 billion this month since the travel account balance has been tallied as a $350 million surplus during the first 25 days of October.
Early this month, BOK Governor Lee Seong-tae already predicted the current account will shift back into surplus in October, while the current account deficit for the entire year would be some $11 billion.
The reason is that global oil prices have declined significantly, while a weakened won has deterred many from traveling overseas.
Korea¡¯s accumulated current account deficit during the first eight months of this year was $12.59 billion.
(englishnews@chosun.com )
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