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Currency Wars Can’t Be Won: Bank of Korea Chief
CNBC.com | January 25, 2013 | 03:52 AM EST

The Bank of Japan's decision to adopt a more aggressive monetary policy has not gone down well with South Korea, whose currency has strengthened rapidly as a consequence. Its central bank head tells CNBC that countries trying to weaken their currencies will not succeed in the long run.

Bank of Korea Governor Kim Choong-soo agreed with the view that no one can win a war of competitive currency devaluation.

"Basically, the level of foreign exchange has to be determined by market fundamentals in the medium to long-run. But in the short run, we all know that there are times where noises can matter, disturbances can take effect. But that's only for the short term period," Kim told CNBC on the sidelines of the World Economic Forum in Davos.

The South Korean won , like the U.S. and Australian currencies, has appreciated 14 percent against a broadly-weakening yen since mid-November amid moves in Japan to adopt a bold monetary policy to revive a weak economy.

(Read More: Here's How 'Abenomics' Will Benefit South Korea )

The Bank of Japan on Tuesday set a 2 percent inflation target and made an open-ended pledge to pump trillions of yen into the economy via asset purchases from 2014.

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