Bank of America to restrict currency lending

AlfredSokol said: "In a basic attempt to curb appreciation of the Korean won, the Bank of Korea [url=http://www.asianewsnet.net/biz.php?aid=11442]is restricting foreign currency lending[/url] [quote] From Aug. 10, the central bank will only permit foreign-currency loans for the purposes of overseas spending and facility investment within the country. The restrictions will apply to banks, insurers and other organizations that deal with foreign currency loans. Total outstanding foreign-currency loans to local recipients came to $44.1 billion at the end of June this year, gaining $2.1 billion after a $16.3 billion rise in 2006. The BOK said more than half of that money was borrowed for purposes other than spending overseas or facility investment. It views borrowers as having taken out foreign-currency loans that carry lower interest rates, only to convert it into the local currency. "Such types of foreign-currency loans increase overseas borrowing overall and put upward pressure on the local currency," the BOK said in a statement. [/quote] The won is up 11% against the US dollar since 2005.That should be Bank of Korea! Haha!"