South Korea wants a Group of 20 meeting in Moscow to focus on the adverse effects of U.S., Japanese and European Union monetary easing and the need to tame capital flows, Vice Finance Minister Shin Je Yoon said.
“There are growing concerns over inflation” and the spillover effects on emerging nations from the loosening, Shin said in Seoul today.
Quantitative easing by developed nations and the impact on emerging markets will be a main topic for the G-20 meeting next month of central bankers and finance ministers, Shin said. South Korea’s won touched a 17-month high against the dollar yesterday, with Shin saying today that officials are studying various measures to reduce volatility in capital flows and currency movements.
Measures responding to capital flows “should be recognized as common policy tools,” the official said. He commented at a seminar and to reporters.
The won closed at 1,058.73 per dollar in Seoul, according to data compiled by Bloomberg. It touched 1,054.49 yesterday, the strongest level since August 2011, after rallying 8.3 percent in 2012, the best performance among the 11-most traded Asian currencies.