The exchange of money earned for dollars is now a confusing and challenging issue for many students who are studying abroad, and it also depends on the state of the global economic crisis. It mostly relies on how the US economy is doing right now. Private company owners in South Korea are currently experiencing a profit problem since no one is purchasing their items; as a result, they are increasing the cost of their goods. The situation in the US is now influenced by it.

 Now, the Fed raised its benchmark interest rate by 0.25% at the FOMC meeting in March and gave the impression that it would do so six more times by year's end. Small company owners and households that have had to take out more loans would have to shoulder a heavier financial burden as a result of higher interest rates. Because of the recent epidemic, they are having trouble keeping control of housing bills and other expenses.

Image by https://advisor.visualcapitalist.com/how-rising-interest-rates-impact-the-economy-and-your-portfolio/

Commercial banks lend money to the Bank of Korea, but if the Bank of Korea increases the amount, commercial banks will increase interest rates. The real estate market will thereafter be significantly impacted by the subsequent increase in loan rates. Due to the Bank of Korea's lack of dollars and the difficulty in importing dollars, it would also be difficult to convert won to dollars.

Since the whole globe uses dollars as its unit of account, a crisis in the US would affect not only South Korea but also the rest of the world if interest rates kept rising. Along with the rise in interest rates, it also had an impact on the conflict between Russia and Ukraine. We simply hope that the economy will stabilize while we wait for the pandemic scenario to finish.

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