Korea posted the largest-ever current account surplus in October on declining imports and less overseas travel.
The Bank of Korea said yesterday that the surplus reached $4.91 billion, after a deficit of $1.35 billion in September. It was the biggest monthly amount since it started compiling data in 1980 and a turnaround from straight months of deficits. Korea now has accumulated a deficit of $9 billion.
It is a "stunning improvement," said Patrick Bennett, a Hong Kong-based currency strategist at Societe Generale.
"But further record surpluses are not anticipated as imports should stabilize but exports continue to slow," he said.
A sharp decline in imports, driven by lower prices of oil and raw materials, has helped the country to report a record current account surplus, said Yang Jae-ryong, head of the central bank`s balance of payments statistics team.
"The deficit on the services account narrowed a lot as overseas travel shrank because of the local currency`s weakness against the dollar," he added.
In November, the country is likely to post a surplus of around $1 billion, the Finance Ministry said yesterday.
The current account is the broadest measure of trade, tracking goods, services and investment income.
A surplus means more funds flowing into the country than going out, which should help ease a shortage of dollars gripping local banks, providing some relief to the beleaguered won.
The Korean won gained ground against the dollar yesterday, on the positive data and the BOK`s plan to receive $4 billion from the Federal Reserve. It closed 0.14 percent higher at 1,476 won per dollar.
The goods account swung to a surplus of $2.79 billion in October, from a deficit of $890 million the previous month, central bank data showed.
A shortfall in the service account, which includes Korean spending on overseas trips, narrowed to $50 million last month from 1.24 billion in September.
The deficit on the capital account, which tracks cross-border investments, widened to a record $25.53 billion, compared with a net outflow of $4.78 billion a month earlier, as local lenders repaid part of their foreign loans.
By Lee Sun-young
(milaya@heraldm.com)
[출처 : 코리아헤럴드]
