Just when the dollar showed some signs of recovery, it was hit by a South Korean bomb. The dollar’s vulnerability was highly underscored by the announcement of South Korean’s National Pension Fund that would no longer buy US treasuries as yields were too low.
The Fund also announced that it is now looking to diversify its holdings, without giving any more information. The fund has almost $220 billion in assets. Analysts said that this kind of news support current sentiment of further weakness expected in the USD.
However, the Financial Times reported that the fund holds around $14 billion in U.S. government debt, which amounts to a small percentage of the $4.5 trillion overall Treasury market.
I guess it’s down to the investors now to decide who is right and who is wrong.
About the South Korean National Pension Fund
The South Korea National Pension Fund is an important long-term asset contributor to the financial health of its citizens. Established in 1988, this fund administers state-managed pension payments to citizens over the age of 60.
Contributions to the fund are made by both employers and employees, with the highest contributions coming from employers. Additionally, self employed citizens are also able to make voluntary contributions. This unique system ensures that people can retire comfortably, despite their income level.
Other benefits of the fund include death benefits in case if an individual passes away before they reach pensionable age and continual disbursements throughout a recipient’s life. The South Korean National Pension Fund is designed to improve financial stability for citizens across all walks of life.
Author Profile
- I am a financial services writer with experience in forex trading and stock market analysis.
Latest entries
- August 14, 2013Investment IdeasStockmarket Shares: Tips for Beginners
- August 7, 2013NewsWireNew consumer protection laws target pressure sellers
- July 25, 2013Best DealsPrice rises spell trouble for UK’s crowded housing market
- July 1, 2013NewsWireMoney lenders welcomed into temple as Church of England plans credit union