1 Million Won to USD in 2004: An Exchange Rate Analysis
Introduction
In 2004, the South Korean won (KRW) was one of the most traded currencies in the world. As a major economy, South Korea's currency exchange rate with the US dollar (USD) played a significant role in international trade and investment. This article aims to explore the exchange rate between 1 million won and USD in 2004.
The Exchange Rate in 2004
In 2004, the exchange rate between the South Korean won and the US dollar fluctuated throughout the year. According to the Bank of Korea, the average annual exchange rate in 2004 was:
1 USD = 1,145 KRW
Using this exchange rate, we can calculate the value of 1 million won in USD:
1,000,000 KRW ≈ 872 USD
Factors Affecting the Exchange Rate
Several factors influenced the exchange rate between the won and the USD in 2004. These included:
Global Economic Conditions
The global economy was experiencing a recovery phase in 2004, which led to an increase in demand for USD. This increased demand put upward pressure on the value of the USD, causing the exchange rate to fluctuate.
Monetary Policy
The Bank of Korea's monetary policy decisions, including changes in interest rates, also affected the exchange rate. A tightening of monetary policy, such as raising interest rates, can attract foreign capital and appreciate the currency.
Trade Balance
South Korea's trade balance also played a role in determining the exchange rate. A trade surplus, which occurs when exports exceed imports, can lead to an appreciation of the currency.
Conclusion
In conclusion, the exchange rate between 1 million won and USD in 2004 was approximately 872 USD. The exchange rate was influenced by various factors, including global economic conditions, monetary policy, and trade balance. Understanding these factors is essential for businesses and investors operating in international markets.
References
- Bank of Korea. (2004). Economic Statistics System. Retrieved from https://ecos.bok.or.kr/
- International Monetary Fund. (2004). World Economic Outlook. Retrieved from https://www.imf.org/en/Publications/WEO
