Most economists and financial market analysts believe that the possibility of reproduction of the Asian financial crisis 25 years ago is very low because the foundation of the Asian economy is more stable than before.Countries have established financial mechanisms with stronger seismic resistance, including impacting the country's economy less than strong dollars, such as reducing bonds in the US dollar.
(Seoul / Tokyo News) Under the impact of the US Federal Reserve's continued interest rate hike and the US dollar innovation high, Asian currencies have generally fallen to a historical low.The New York Times pointed out that this extensive weakening of currency appeared last time in the 1997 Asian financial crisis. In order to avoid falling into the storm again, countries are doing their best to stabilize the exchange rate.Low nature.
Ti Kun is facing a dilemma in Penang, Malaysia, and the Lingji exchange rate has fallen to a new low of 24 years.At least 25%of the compression; however, Titun did not dare to raising the price of restaurants because he was afraid of losing customers.He said: "Maybe we still have to increase the price in the end to protect themselves, but now I don't have the courage to do so."
The US dollar is the major global trading currency. The Fed's radical rate hike promoted the significant increase in the US dollar, which caused the prices of energy, grain and commodities that had risen in the rising disease and the Russian and Ukraine War.
Governments of Asian countries have supported their currencies.On the day of Vietnam's interest rate hike, Japan entered the market for the first time in 24 years to support the yen. In China, the RMB exchange rate has lowered to the lowest in nearly 14 years. The central bank launched a series of measures to suppress the decline of the RMB, including warning speculators not to bet on the devaluation of the RMB.
The current pressure on Asian currency is reminiscent of the financial crisis in 1997.At that time, the speculators sold the Thai baht. The Central Bank of Thailand took out foreign exchange reserves to defend the baht. However, the reserves were finally exhausted. The exchange rate of the Thai baht flew down. It caused a chain response in Asia, the depreciation of the currency in various countries, the stock market plummeted, the company's bankruptcy, and the Asian economy had a serious decline.
Xu Heyi, chief economist at the Macroeconomic Research Office of China and Japan and South Korea Macroeconomic Research, pointed out that the financial crisis brought huge damage that year, and countries in the region will never forget. Because of thisFinancial reform.