Country Project: Understanding Foreign Exchange

IV.Understanding Foreign Exchange (by 4/30)
A.Current account balance and net international investment position.
* Does your country have a current account surplus or deficit?  How large is the surplus or deficit as a % of GDP?
[South Korea has always had a greater value of exports compared to that of imports and thus have current account surplus. As of 2019, the value of the exports stood at USD 46,906 million which is greater compared to vale of imports that stood at USD 41,869 million.
As of 2019, South Korea current account surplus stood at 4.1% of the Gross Domestic Product (GDP).]
* Is your country a net international creditor or net debtor?  How large as a % of GDP?
[The Net International Investment Position (NIIP) of South Korea as of December 2019 is a positive value hence a creditor nation. As of 2018, NIIP value was approximately 25% of the GDP and close to 30% as at the end of 2019.]
B.Currency and exchange rate regime.
* Does your country have its own currency?  Or does it share a currency with a larger economic bloc or simply use another country’s currency?
[South Korea has its own currency. The most commonly used currency in South Korea is the Korean Won. However, the US Dollar is also accepted in other parts of the country more so in large cities. The denominations for Korean Won are awkwardly large compared to other countries, with banknotes ranging from 1000 to 50000 won.]
* If your country has its own currency, does the currency float or is it fixed?  If floating, does the central bank intervene frequently to influence its value?  If fixed, what currency is it pegged to and what is the mechanism used to fix its value?  How much is its value allowed to fluctuate?
[Initially, the Korean Won was ascribed to the USD up until 1980s when it was later ascribed to a basket of...