‘이 돈 다 어디갔나’…한은 찍어낸 시중 현금 90조 돌파
On the back of Korea’s expansionary monetary policy,… the amount of cash circulating the country has hit a record-high.
For the ful story we turn to Hwang Ji-hye
Koreans are flush with cash, more so than ever.
Data from the Bank of Korea show the amount of cash circulating within the country has hit a record high.
The figure stood at roughly 80 billion U.S. dollars as of the end of February,… up almost one billion dollars from the previous month.
That sum had hit 60 billion in 2014… and 70 billion early last year.
The record amount of notes and coins in circulation comes… as the central bank continues to hold its key rate at a record-low of one-and-a-half percent.
This has resulted in more people stashing away their cash instead of placing it with banks,… pushing up demand… and prompting the central bank to fire up their printing presses.
A central bank official says Korea’s aging population has also contributed to the trend… as the older generation still prefers to pad their wallets with cash.
“And it’s not just the amount of currency in circulation that has hit a record high.
With the central bank introducing easing measures to prop up the economy… such as expanding its lending program for small- and mid-sized firms,… loans extended by the Bank of Korea have peaked as well.”
As of the end of February,… that amount stood at around 16-point-5 billion dollars,… up roughly 40 million from the previous month.
Increased liquidity in the market typically… drives down the value of a country’s currency, while fueling inflation.
And with corporate investment still in the doldrums, despite monetary easing measures, experts say… the central bank needs to pay extra attention when it comes to using its authority to issue notes.
Hwang Ji-hye, Arirang News.
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