Posted on 09/25/2013 2:15:04 AM PDT by TexGrill
The financial authorities are monitoring closely a massive inflow of foreign funds as a sudden reversal could impact the local currency and stock markets heavily.
They are paying close attention to whether “hot money” seeking short-term speculative gains has flowed into the local financial market that has remained resilient despite volatility abroad.
Policymakers and analysts suspect some of the incoming capital is hot money or hedge funds seeking speculative gains even from foreign exchange rates.
“We can’t say how much is long-term investment and how much is short-term speculation as they are mixed. However, when volatility grows, short-term investments, using hot money, move first. So we are monitoring such moves,” Bank of Korea (BOK) official Eun Ho-sung said.
Researcher Park Sung-wook at the Korea Institute of Finance also said short-term funds including speculative ones may have come into the country.
“At the time when the U.S.’ stimulus cut is expected but ‘when’ is not known, investors do not want to entirely withdraw their funds from emerging markets but also do not want to keep them at countries having high risks. So they park their money temporarily in countries which are relatively stable, and I think such capital has come to Korea,” he said.
(Excerpt) Read more at koreatimes.co.kr ...
Soros crashing another market?
If so, than eventually mr. soros will have a day of reckoning with some governments blacks ops people.
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