Government Bonds Interest Rate Compared to Federal Budget by Year
Government Bonds Interest Rate Compared to Federal Budget by Year

The won-dollar exchange rate has surpassed 1,450 won, and the value of the won has fallen daily, reaching its lowest level in 15 years. Amid this economic turmoil, investors are focusing on dollar bonds as an alternative to protect asset value and generate revenue. Dollar bonds are rapidly emerging as attractive assets that offer stable interest income as well as capital gains from rising exchange rates.

Following President Trump's re-election, the strong dollar policy has been fully implemented, further strengthening America's economic advantage. With the Federal Reserve's interest rate hike trend, the dollar has established itself as an even more solid reserve currency. Global capital is flowing into dollar-denominated assets, further highlighting the value of dollar-based assets.

In contrast, the South Korean economy is struggling with a trade deficit, foreign capital outflows, and political instability, resulting in a weak won. This economic environment reduces the real value of assets held in won, prompting investors to feel the need to shift to dollar-based assets.

Dollar bonds are particularly standing out in this environment. Recently, the monthly interest rate on dollar bonds surged from 1.3% to 2.4%, providing high revenue. At the same time, additional capital gains from rising exchange rates are making dollar bonds not just a defensive asset but an active revenue-generating asset.

Financial experts analyze that the trend of a strong dollar is likely to continue for at least two more years. This is because the U.S. interest rate hike trend and the Trump administration's economic policies are having a lasting impact on global economic flows. Experts emphasize that amid these circumstances, dollar bonds are one of the most effective means of hedging against exchange rate volatility and maintaining asset value.

During past financial crises, dollar bonds were a key tool for asset protection. During the 1997 IMF currency crisis and the 2008 global financial crisis, dollar bonds played an important role by providing investors with stable cash flow and asset value. Even in the current economic situation, dollar bonds are being evaluated as assets that simultaneously meet the goals of asset protection and revenue generation.

In a time of extreme exchange rate volatility, dollar bonds are establishing themselves as essential investment destinations that provide both stability and revenue. Experts advise, "In a situation where the value of the won continues to decline, dollar bonds are the optimal alternative for defending asset value and expecting additional capital gains."