Many Asian countries buy their domestic currency or sell foreign exchange to curb the depreciation of their national currencies, and foreign exchange reserves are decreasing.Compared with last year and recently, except in Japan, other GDPs ranked in the top 10 economies in Asia, all of which have decreased, a total of 5%or $ 300 billion.
(Tokyo News) The rapid appreciation of the US dollar and the continued rise in resource prices have led many Asian countries to take intervention measures to buy their domestic currency or sell foreign exchange to curb the depreciation of their national currencies.This has reduced the balance of foreign exchange reserves in more and more countries; if the pressure of the depreciation of Asian currencies continues to increase, it may exacerbate the decrease in foreign exchange reserves and cause the world financial market to be turbulent.
Nikkei Chinese website reports that many Asian countries have reserved a large number of foreign exchange due to the lessons of the previous currency crisis, but the foreign exchange reserves of many Asian countries have decreased since this year.Compared with last year and recently, in addition to Japan, other domestic GDP (GDP) ranked in the top 10 economies in Asia, such as mainland China, Taiwan and other countries and regions.300 billion US dollars (about S $ 412.5 billion).
The fastest reduction of foreign exchange reserves in India
Reports pointed out that India is the fastest for foreign exchange reserves.According to statistics from the Central Bank of India, as of May 27, India's foreign exchange reserves fell to US $ 601.4 billion, a decrease of about 5%from US $ 633.6 billion at the end of last year.In September last year, India's foreign exchange reserves reached US $ 642.5 billion, a record high, but then began to decrease. The deceleration accelerated after February this year.
India's rupee has continued to depreciate this year, and in May to $ 1 against 78 rupees, the lowest has always been the lowest.The currency tightening of the US Federal Reserve has promoted the appreciation of the US dollar. In addition, the rise in resource prices has caused India's frequent project deficits to reach $ 23 billion from October to December last year, the largest in the past 10 years.
Mitsui Sumitomo Bank (SMBC) Ritama Hiroi Hiroi, a senior economist in charge of emerging market countries, pointed out that huge frequent project deficits will further depreciate the rupee.Intervention measures for foreign exchange and buying rupees.
In addition, the foreign exchange reserves of South Korea fell to 449.3 billion US dollars at the end of April this year, a decrease of 3%from the end of last year; the exchange rate of the Korean won against the US dollar depreciated by 5%compared with the end of last year.The Bank of Korea acknowledged the implementation of exchange rate intervention measures, saying that "this is to alleviate the fluctuation of the exchange rate."
As for Indonesia and Thailand, which has a high degree of dependence on China, the currency depreciation is affected by the slowdown of the Chinese economy, and foreign exchange reserves have decreased by about 6%to about 7%.Vietnam, which is also closely connected with China, cannot curb the depreciation of the Vietnamese Dun to the US dollar.
The economy in Hong Kong has stagnated due to the appreciation of the US dollar and strict crown disease prevention measures.The strengthening pressure of Hong Kong dollars has encouraged the financial sector to intervene.Hong Kong's foreign exchange reserves decreased by 6%compared to the end of last year.The relevant people of the Japanese bank's foreign exchange believe that if this situation lasts for several years, the exchange rate system currently adopted by Hong Kong's Hong Kong dollar and the US dollar linkage "may usher in the limit."
For the current situation of Asian countries, SMBC's Pingshan pointed out that although it is not yet worried about the stage of the currency crisis, it is still necessary to pay close attention to the movement of foreign exchange reserves in various countries.He said: "The US dollar appreciates rapidly, and the trend of rising resource prices has no signs. In the future, Asian currencies may still be easily sold."
