Ⅱ. Exchange rateregime
1. What is the exchange rate?
In finance, the exchange rates between two currencies specifies how much one currency is worth in terms of the other. It is the value of a foreign nation’s currency in terms of the home nation’s currency. For example an exchange rate of 91 Japanese yen (JPY, ¥) to the United States dollar (USD, $) means that 91 yen is worth the
DEFINITION
A system that is in a middle of fixed and flexible. It limited the range of exchange rate fluctuation about certain currency within certain range(1~2.25%).
The fixed exchange rate system ( 1945. 10 ~ 1964. 5 )
The unitary fluctuation foreign exchange system ( 1964. 5 ~ 1980. 2 )
The multicurrency basket system ( 1980. 2 ~ 1990. 2 )
Average exchange rate system ( 1990. 3 ~
Exchange Fund paper등을 결제할 수 있을 만큼의 충분한 외화보유고를 요구한다. 이때 결제하는 환율이 연계환율로 현재 홍콩달러의 대 미국달러 환율은 7.8HK$=1US$ 로 책정되어 있다.
이와 같은 환율제도를 Pegged Exchange rate system(페그제)라고 하며 1997년 아시아국가의 위기 전에는 태국, 베트남 등 많은 아시아
Korean economy is highly dependent on export and
it occupies more
60 percent on Korea’s GDP
▪ Finance product
▪ Contract between a bank and a company
▪ Derivative to avoid certain danger of
change under floating exchange rate system
The government has decided to link
the value to another currency or
to some valuable commodity like gold
Do not ch
5. History of US-Korea FTA
Although the treaty was signed on June 30, 2007, ratification of the agreement stalled when President George W. Bush's fast-track trade authority expired and a Democrat-controlled U.S. Congress expressed objections to the treaty related to concerns over bilateral trade in automobiles and U.S. beef exports. Nearly three years later, on June 26, 2010, President Barack Ob