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Showing posts with the label Foreign exchange market

1998 IMF Gold Collection Campaign: How It Worked

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If you picture the 1998 IMF Gold Collection Campaign as entirely unpaid donations, the records show a different picture: some participants received payment. South Koreans contributed gold to secure foreign currency, but the campaign alone does not explain the recovery. How household gold became foreign currency Individuals handed in gold at collection points, where it was appraised and pooled for export. Sales abroad brought in foreign currency. Participants who chose payment received proceeds from those sales; others contributed without compensation. International support and changes to debt repayment schedules also helped resolve the crisis. South Korea completed repayment of its IMF borrowing related to the crisis on August 23, 2001, a separate milestone from the 1998 campaign. Gold jewelry and a scale sit in a cargo warehouse as workers load cases onto a pallet near an aircraft. Gold collection records in context In the original article on Injoys, you can compare historical ...

Weak Yen After 2026 Rate Hikes: Causes

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Japan's September 2026 rate increase does not mean you can expect a stronger yen. Based on that month's policy decisions, U.S. rates still exceed Japan's by 2.50 to 2.75 percentage points. That gap, expectations for future rates and overseas investment flows help explain the continued weakness.   Why a rate increase may not lift the currency Japan's policy rate target is around 1.25% per year, compared with the U.S. target range of 3.75% to 4.00% per year, based on the September 2026 decisions. Higher U.S. rates keep dollar assets attractive for the interest they pay. An expected Japanese increase may already be reflected in exchange rates before its announcement. For household budgeting, you can buy less when a weak yen raises import prices. Currency intervention can increase demand for yen, but cannot remove the rate gap or investors' long-term outlook.   Weak yen context beyond the headlines In the original article on Injoys, you will find comparison tab...

FOMC 0.25-Point Hike September 2026 Rate Outlook

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If you are checking whether September's hike commits the Fed to another increase, the answer is no. The original article on Injoys reports a 0.25 percentage point rise to 3.75-4.00% per year, based on the September 16, 2026 release. Further moves remain undecided.   Separate the decision from the forecast The Federal Open Market Committee sets the target range for the federal funds rate, the rate for overnight borrowing between financial institutions. All 12 voting members supported this increase from 3.50-3.75% per year. For you, the useful distinction is between that vote and the dot plot, which records participants' views of appropriate future rates. Of 18 participants, 12 projected a year-end 2026 range of 4.00-4.25%. That points toward another increase, without fixing its timing.   Read the FOMC figures in context In the original article on Injoys, you can compare the projection table with the meeting calendar and the explanation of announcement versus implementa...

Korean Crypto Rebound Depends on Stablecoin Rules

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This content applies specifically to South Korea. If high trading volume looks like proof that Korea’s crypto industry is recovering, the core answer is more cautious. A rebound depends on turning trading activity into payment, development, and custody infrastructure—with clear rules for won stablecoins and autonomous AI agents. The won is South Korea’s currency, but issuing won-denominated tokens alone does not create stability or defend its exchange rate.   Trading activity is not an industrial foundation The article separates exchange turnover from sustainable service growth. A busy retail market does not automatically produce competitive developers, custodians, payment products, or predictable conditions for corporate participation. It also explains why market-share claims need a defined date, exchange list, and trading category. Spot and derivatives data must be separated, while won-converted figures can change with exchange rates. This helps you avoid treating a strikin...

US Dollar Index 100 Baseline Interpretation Guide

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If the US Dollar Index is above 100 today, does that mean the dollar has recently risen or buys more in the United States? Not necessarily: 100 represents the dollar’s relative level against six currencies in March 1973, not a normal exchange rate or measure of purchasing power. This distinction matters when you compare DXY with the USD/KRW exchange rate. The Korean won is not included in the index, so the two indicators can move in different directions.   What the baseline and currency weights reveal The index combines the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc. It uses a weighted geometric calculation rather than adding six percentage changes. The euro has a 57.6% weight, followed by the yen at 13.6%, pound at 11.9%, Canadian dollar at 9.1%, krona at 4.2% and franc at 3.6%. An index above 100 means the dollar is stronger against that basket than at the March 1973 baseline; below 100 means it is weaker. That level says nothing by itself...